GABA Georgia Bancshares Inc (CE)

Georgia Bancshares, Inc., (OTCBB:GABA), the parent company of The Bank of Georgia, today announced net income for the third quarter of 2006 of $917,519, or $.33 per share. Same quarter earnings for 2005 were $709,895, or $.24 per share. Net income for the nine months ended September 30, 2006 was $2,941,797 or $1.04 per share as compared to $1,963,624 or $.66 per share for the same period in 2005. Total assets were $292,066,343 at September 30, 2006 as compared to $271,536,836 at December 31, 2005. Today, the Board of Directors declared a cash dividend of $.05 per share for common shareholders and $.055 per share for Series A preferred shareholders. The dividends are payable on November 15, 2006 to holders of record on October 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 eight locations in Peachtree City, Fayetteville, Newnan, Sharpsburg, Tyrone and Fairburn, Georgia. 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. Georgia Bancshares, Inc. Condensed Consolidated Balance Sheets � September 30,2006 December 31,2005 Assets: Cash and cash equivalents: Cash and due from banks $9,360,952� $6,274,832� Interest-bearing deposits in other banks 498,918� 229,088� Federal funds sold 14,000� 5,681,000� Cash and cash equivalents 9,873,870� 12,184,920� Investments securities: Securities available-for-sale 35,740,235� 27,453,249� Other investments 1,206,641� 1,997,241� 36,946,876� 29,450,490� � Loans net of allowance for loan losses of $3,107,556 226,582,250� 214,526,591� and $2,898,193 respectively Accrued interest receivable 2,980,689� 2,593,532� Premises and equipment, net 8,707,816� 6,395,503� Bank owned life insurance 5,028,592� 4,894,153� Other assets 1,946,250� 1,491,647� Total assets $292,066,343� $271,536,836� � Liabilities: Deposits: Noninterest-bearing $34,896,931� $30,915,500� NOW 41,055,681� 31,281,232� Savings 23,476,459� 22,806,836� Time deposits $100,000 and over 86,098,449� 82,572,795� Other time deposits 60,360,664� 61,413,845� Total deposits 245,888,184� 228,990,208� � Securities sold under agreements to repurchase 257,919� 143,891� Federal funds purchased 140,000� 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 2,563,264� 1,998,646� Total liabilities 265,551,367� 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; 2,814,098 shares issued and outstanding 14,939,721� 17,257,849� Retained earnings 9,412,172� 6,620,046� Accumulated other comprehensive income (132,329) (175,804) Total shareholders' equity 26,514,976� 23,702,091� Total liabilities and shareholders' equity $292,066,343� $271,536,836� Georgia Bancshares, Inc. Condensed Consolidated Statements of Income (Unaudited) � Three Months Ended September 30, 2006� 2005� Interest income: Interest and fees on loans $ 5,050,040� $ 3,993,443� Interest and dividends on investments 371,387� 265,949� Interest on federal funds sold and other interest income 81,663� 11,019� � Total interest income 5,503,090� 4,270,411� � Interest expense: Interest on deposits 1,974,141� 1,384,434� Interest on securities sold under agreements to repurchase 1,158� 713� Interest on other borrowed funds 250,588� 217,845� Total interest expense 2,225,887� 1,602,992� � Net interest income 3,277,203� 2,667,419� � Provision for loan losses 113,100� 96,600� � Net interest income after provision for loan losses 3,164,103� 2,570,819� � Other income: Service charges on deposit accounts 159,360� 88,422� Gains (losses) on sale of other assets 198� 0� Gains on sales of securities available-for-sale 0� 0� Mortgage banking income 195,434� 240,532� Other operating income 124,334� 111,513� Total other income 479,326� 440,467� � Other expense: Salaries and employee benefits 1,471,975� 1,306,908� Occupancy and equipment expense 220,759� 211,104� Data processing 187,181� 162,250� Other operating expenses 346,995� 315,129� Total other expense 2,226,910� 1,995,391� � Income before income taxes 1,416,519� 1,015,895� Income tax expense 499,000� 306,000� � Net income $ 917,519� $ 709,895� � Basic earnings per share $ 0.33� $ 0.24� � Diluted earnings per share $ 0.27� $ 0.20� Georgia Bancshares Inc. Condensed Consolidated Statements of Income � Nine Months Ended September 30, 2006� 2005� Interest income: Interest and fees on loans $ 14,568,048� $ 11,351,640� Interest and dividends on investments 1,006,389� 858,683� Interest on federal funds sold and other interest income 223,671� 33,180� � Total interest income 15,798,108� 12,243,503� � Interest expense: Interest on deposits 5,448,601� 3,818,125� Interest on securities sold under agreements to repurchase 2,267� 3,565� Interest on other borrowed funds 738,927� 537,587� Total interest expense 6,189,795� 4,359,277� � Net interest income 9,608,313� 7,884,226� � Provision for loan losses 379,300� 289,800� � Net interest income after provision for loan losses 9,229,013� 7,594,426� � Other income: Service charges on deposit accounts 367,291� 252,837� Gains (losses) on sale of other assets 579,510� 599� Gains on sales of securities available-for-sale 0� 0� Mortgage banking income 525,864� 505,635� Other operating income 364,930� 316,168� Total other income 1,837,595� 1,075,239� � Other expense: Salaries and employee benefits 4,207,755� 3,720,764� Occupancy and equipment expense 647,440� 632,408� Data processing 534,744� 472,727� Other operating expenses 1,039,372� 1,023,071� Total other expense 6,429,311� 5,848,970� � Income before income taxes 4,637,297� 2,820,695� Income tax expense 1,695,500� 857,071� � Net income $ 2,941,797� $ 1,963,624� � Basic earnings per share $ 1.04� $ 0.66� � Diluted earnings per share $ 0.88� $ 0.56� Georgia Bancshares, Inc., (OTCBB:GABA), the parent company of The Bank of Georgia, today announced net income for the third quarter of 2006 of $917,519, or $.33 per share. Same quarter earnings for 2005 were $709,895, or $.24 per share. Net income for the nine months ended September 30, 2006 was $2,941,797 or $1.04 per share as compared to $1,963,624 or $.66 per share for the same period in 2005. Total assets were $292,066,343 at September 30, 2006 as compared to $271,536,836 at December 31, 2005. Today, the Board of Directors declared a cash dividend of $.05 per share for common shareholders and $.055 per share for Series A preferred shareholders. The dividends are payable on November 15, 2006 to holders of record on October 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 eight locations in Peachtree City, Fayetteville, Newnan, Sharpsburg, Tyrone and Fairburn, Georgia. 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 September 30, December 31, 2006 2005 ---------------------------------- Assets: Cash and cash equivalents: Cash and due from banks $9,360,952 $6,274,832 Interest-bearing deposits in other banks 498,918 229,088 Federal funds sold 14,000 5,681,000 ---------------------------------- Cash and cash equivalents 9,873,870 12,184,920 ---------------------------------- Investments securities: Securities available-for-sale 35,740,235 27,453,249 Other investments 1,206,641 1,997,241 ---------------------------------- 36,946,876 29,450,490 ---------------------------------- Loans net of allowance for loan losses of $3,107,556 226,582,250 214,526,591 and $2,898,193 respectively Accrued interest receivable 2,980,689 2,593,532 Premises and equipment, net 8,707,816 6,395,503 Bank owned life insurance 5,028,592 4,894,153 Other assets 1,946,250 1,491,647 ---------------------------------- Total assets $292,066,343 $271,536,836 ================================== Liabilities: Deposits: Noninterest-bearing $34,896,931 $30,915,500 NOW 41,055,681 31,281,232 Savings 23,476,459 22,806,836 Time deposits $100,000 and over 86,098,449 82,572,795 Other time deposits 60,360,664 61,413,845 ---------------------------------- Total deposits 245,888,184 228,990,208 Securities sold under agreements to repurchase 257,919 143,891 Federal funds purchased 140,000 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 2,563,264 1,998,646 ---------------------------------- Total liabilities 265,551,367 247,834,745 ---------------------------------- 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; 2,814,098 shares issued and outstanding 14,939,721 17,257,849 Retained earnings 9,412,172 6,620,046 Accumulated other comprehensive income (132,329) (175,804) ---------------------------------- Total shareholders' equity 26,514,976 23,702,091 ---------------------------------- Total liabilities and shareholders' equity $292,066,343 $271,536,836 ================================== *T -0- *T Georgia Bancshares, Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended September 30, ----------------------- 2006 2005 ----------- ----------- Interest income: Interest and fees on loans $5,050,040 $3,993,443 Interest and dividends on investments 371,387 265,949 Interest on federal funds sold and other interest income 81,663 11,019 ----------- ----------- Total interest income 5,503,090 4,270,411 ----------- ----------- Interest expense: Interest on deposits 1,974,141 1,384,434 Interest on securities sold under agreements to repurchase 1,158 713 Interest on other borrowed funds 250,588 217,845 ----------- ----------- Total interest expense 2,225,887 1,602,992 ----------- ----------- Net interest income 3,277,203 2,667,419 Provision for loan losses 113,100 96,600 ----------- ----------- Net interest income after provision for loan losses 3,164,103 2,570,819 ----------- ----------- Other income: Service charges on deposit accounts 159,360 88,422 Gains (losses) on sale of other assets 198 0 Gains on sales of securities available-for- sale 0 0 Mortgage banking income 195,434 240,532 Other operating income 124,334 111,513 ----------- ----------- Total other income 479,326 440,467 ----------- ----------- Other expense: Salaries and employee benefits 1,471,975 1,306,908 Occupancy and equipment expense 220,759 211,104 Data processing 187,181 162,250 Other operating expenses 346,995 315,129 ----------- ----------- Total other expense 2,226,910 1,995,391 ----------- ----------- Income before income taxes 1,416,519 1,015,895 Income tax expense 499,000 306,000 ----------- ----------- Net income $917,519 $709,895 =========== =========== Basic earnings per share $0.33 $0.24 Diluted earnings per share $0.27 $0.20 *T -0- *T Georgia Bancshares Inc. Condensed Consolidated Statements of Income Nine Months Ended September 30, ------------------------- 2006 2005 ------------ ------------ Interest income: Interest and fees on loans $14,568,048 $11,351,640 Interest and dividends on investments 1,006,389 858,683 Interest on federal funds sold and other interest income 223,671 33,180 ------------ ------------ Total interest income 15,798,108 12,243,503 ------------ ------------ Interest expense: Interest on deposits 5,448,601 3,818,125 Interest on securities sold under agreements to repurchase 2,267 3,565 Interest on other borrowed funds 738,927 537,587 ------------ ------------ Total interest expense 6,189,795 4,359,277 ------------ ------------ Net interest income 9,608,313 7,884,226 Provision for loan losses 379,300 289,800 ------------ ------------ Net interest income after provision for loan losses 9,229,013 7,594,426 ------------ ------------ Other income: Service charges on deposit accounts 367,291 252,837 Gains (losses) on sale of other assets 579,510 599 Gains on sales of securities available-for- sale 0 0 Mortgage banking income 525,864 505,635 Other operating income 364,930 316,168 ------------ ------------ Total other income 1,837,595 1,075,239 ------------ ------------ Other expense: Salaries and employee benefits 4,207,755 3,720,764 Occupancy and equipment expense 647,440 632,408 Data processing 534,744 472,727 Other operating expenses 1,039,372 1,023,071 ------------ ------------ Total other expense 6,429,311 5,848,970 ------------ ------------ Income before income taxes 4,637,297 2,820,695 Income tax expense 1,695,500 857,071 ------------ ------------ Net income $2,941,797 $1,963,624 ============ ============ Basic earnings per share $1.04 $0.66 Diluted earnings per share $0.88 $0.56 *T