GABA Georgia Bancshares Inc (CE)

Georgia Bancshares, Inc., (OTCBB:GABA), the parent company of The Bank of Georgia, today announced net income for the first quarter of 2006 of $1,055,600, or $.37 per share. Same quarter earnings for 2005 were $621,486, or $.21 per share. Total assets were $291,661,694 at March 31, 2006 as compared to $271,536,836 at December 31, 2005. In connection with the Special Meeting of Shareholders that was held on January 25, 2006, the proposal to amend the Company's Articles of Incorporation to provide for the reclassification of each share of Georgia Bancshares, Inc. common stock held by record holders of fewer than 1,500 shares into one share of Series A preferred stock was approved. Management has filed the Articles of Amendment and other documentation to effect the reclassification and suspend the Company's SEC reporting obligations. For more information about Georgia Bancshares, Inc., visit 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. An eighth location near the hospital in Fayetteville is currently under construction with an anticipated opening in July 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 March 31, December 31, 2006 2005 ------------ ------------ Assets: Cash and cash equivalents: Cash and due from banks $ 14,552,558 $ 6,274,832 Interest-bearing deposits in other banks 684,657 229,088 Federal funds sold 3,165,000 5,681,000 ------------ ------------ Cash and cash equivalents 18,402,215 12,184,920 ------------ ------------ Investments securities: Securities available-for-sale 28,558,927 27,453,249 Other investments 1,206,641 1,997,241 ------------ ------------ 29,765,568 29,450,490 ------------ ------------ Loans net of allowance for loan losses of $3,049,303 227,951,101 214,526,591 and $2,898,193 respectively Accrued interest receivable 2,320,007 2,593,532 Premises and equipment, net 6,580,298 6,395,503 Bank owned life insurance 4,939,190 4,894,153 Other assets 1,703,315 1,491,647 ------------ ------------ Total assets $291,661,694 $271,536,836 ============ ============ Liabilities: Deposits: Noninterest-bearing $ 33,009,243 $ 30,915,500 NOW 38,595,388 31,281,232 Savings 24,085,092 22,806,836 Time deposits $100,000 and over 88,835,938 82,572,795 Other time deposits 63,229,388 61,413,845 ------------ ------------ Total deposits 247,755,049 228,990,208 Securities sold under agreements to repurchase 200,790 143,891 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 2,354,104 1,998,646 ------------ ------------ Total liabilities 267,011,943 247,834,745 ------------ ------------ 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 14,897,119 17,257,849 Retained earnings 7,675,646 6,620,046 Accumulated other comprehensive income (218,426) (175,804) ------------ ------------ Total shareholders' equity 24,649,751 23,702,091 ------------ ------------ Total liabilities and shareholders' equity $291,661,694 $271,536,836 ============ ============ Georgia Bancshares, Inc. Condensed Consolidated Statements of Income Three Months Ended March 31, ----------------------- 2006 2005 ---------- ---------- Interest income: Interest and fees on loans $4,633,639 $3,624,900 Interest and dividends on investments 304,922 325,232 Interest on federal funds sold and other interest income 31,082 132 ---------- ---------- Total interest income 4,969,643 3,950,264 ---------- ---------- Interest expense: Interest on deposits 1,607,887 1,148,779 Interest on securities sold under agreements to repurchase 492 1,370 Interest on other borrowed funds 250,059 151,289 ---------- ---------- Total interest expense 1,858,438 1,301,438 ---------- ---------- Net interest income 3,111,205 2,648,826 Provision for loan losses 153,100 96,600 ---------- ---------- Net interest income after provision for loan losses 2,958,105 2,552,226 ---------- ---------- Other income: Service charges on deposit accounts 96,975 71,070 Gains (losses) on sale of other assets 579,312 599 Gains on sales of securities available-for- sale 0 0 Mortgage banking income 147,549 105,553 Other operating income 116,020 100,247 ---------- ---------- Total other income 939,856 277,469 ---------- ---------- Other expense: Salaries and employee benefits 1,353,682 1,202,069 Occupancy and equipment expense 199,482 210,383 Data processing 172,712 156,312 Other operating expenses 358,485 336,445 ---------- ---------- Total other expense 2,084,361 1,905,209 ---------- ---------- Income before income taxes 1,813,600 924,486 Income tax expense 758,000 303,000 ---------- ---------- Net income $1,055,600 $ 621,486 ========== ========== Basic earnings per share $ 0.37 $ 0.21 Diluted earnings per share $ 0.32 $ 0.18 *T