GABA Georgia Bancshares Inc (CE)

Georgia Bancshares, Inc., (OTCBB:GABA), the parent company of The Bank of Georgia, today announced net income for the fourth quarter of 2006 of $930,250, or $.33 per share. Same quarter earnings for 2005 were $794,949, or $.27 per share. Net income for the twelve months ended December 31, 2006 was $3,872,047 or $1.37 per share as compared to $2,758,573 or $.93 per share for the same period in 2005. Total assets were $318,013,177 at December 31, 2006 as compared to $271,536,836 at December 31, 2005. Results for 2006 are unaudited and, therefore are subject to change during the course of the upcoming audit. 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 February 15, 2007 to holders of record on January 31, 2007. 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 hom e 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 � Dec. 31, Dec. 31, 2006� 2005� Assets: (Unaudited) Cash and cash equivalents: Cash and due from banks $9,928,755� $6,274,832� Interest-bearing deposits in other banks 331,334� 229,088� Federal funds sold 6,000� 5,681,000� Cash and cash equivalents 10,266,089� 12,184,920� Investments securities: Securities available-for-sale 35,169,753� 27,453,249� Other investments 1,278,642� 1,997,241� 36,448,395� 29,450,490� � Loans net of allowance for loan losses of $3,312,947 and $2,898,193 respectively 251,529,119� 214,526,591� � Accrued interest receivable 3,684,846� 2,593,532� Premises and equipment, net 8,866,607� 6,395,503� Bank owned life insurance 5,079,057� 4,894,153� Other assets 2,139,064� 1,491,647� Total assets $318,013,177� $271,536,836� � Liabilities: Deposits: Noninterest-bearing $32,483,895� $30,915,500� NOW 31,574,534� 31,281,232� Savings 25,714,143� 22,806,836� Time deposits $100,000 and over 108,702,675� 82,572,795� Other time deposits 63,980,783� 61,413,845� Total deposits 262,456,030� 228,990,208� � Securities sold under agreements to repurchase 314,972� 143,891� Federal funds purchased 8,449,000� 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 2,655,194� 1,998,646� Total liabilities 290,577,196� 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 14,948,860� 17,257,849� Retained earnings 10,192,699� 6,620,046� Accumulated other comprehensive income (990) (175,804) Total shareholders' equity 27,435,981� 23,702,091� Total liabilities and shareholders' equity $318,013,177� $271,536,836� Georgia Bancshares, Inc. Condensed Consolidated Statements of Income (Unaudited) � � Three Months Ended December 31, 2006� 2005� Interest income: (Unaudited) (Unaudited) Interest and fees on loans $ 5,324,296� $ 4,279,211� Interest and dividends on investments 422,397� 270,421� Interest on federal funds sold and other interest income 7,344� 10,727� � Total interest income 5,754,037� 4,560,359� � Interest expense: Interest on deposits 2,094,732� 1,479,044� Interest on securities sold under agreements to repurchase 2,114� 575� Interest on other borrowed funds 354,190� 254,146� Total interest expense 2,451,036� 1,733,755� � Net interest income 3,303,001� 2,826,594� � Provision for loan losses 232,888� 96,600� � Net interest income after provision for loan losses 3,070,113� 2,729,994� � Other income: Service charges on deposit accounts 174,767� 88,330� Gains (losses) on sale of other assets (75,400) 49,498� Gains on sales of securities available-for-sale 4,975� 0� Mortgage banking income 128,060� 186,821� Other operating income 124,781� 113,095� Total other income 357,183� 437,744� � Other expense: Salaries and employee benefits 1,409,735� 1,288,861� Occupancy and equipment expense 236,710� 207,555� Data processing 196,796� 154,347� Other operating expenses 336,805� 292,229� Total other expense 2,180,046� 1,942,992� � Income before income taxes 1,247,250� 1,224,746� Income tax expense 317,000� 429,797� � Net income $ 930,250� $ 794,949� � Basic earnings per share $ 0.33� $ 0.27� � Diluted earnings per share $ 0.27� $ 0.23� Georgia Bancshares, Inc. Condensed Consolidated Statements of Income � � Twelve Months Ended December 31, 2006� 2005� Interest income: (Unaudited) Interest and fees on loans $ 19,892,344� $ 15,630,851� Interest and dividends on investments 1,428,786� 1,129,104� Interest on federal funds sold and other interest income 231,015� 43,907� � Total interest income 21,552,145� 16,803,862� � Interest expense: Interest on deposits 7,543,333� 5,297,169� Interest on securities sold under agreements to repurchase 4,381� 4,140� Interest on other borrowed funds 1,093,117� 791,733� Total interest expense 8,640,831� 6,093,042� � Net interest income 12,911,314� 10,710,820� � Provision for loan losses 612,188� 386,400� � Net interest income after provision for loan losses 12,299,126� 10,324,420� � Other income: Service charges on deposit accounts 542,058� 341,167� Gains (losses) on sale of other assets 504,110� 50,097� Gains on sales of securities available-for-sale 4,975� 0� Mortgage banking income 653,924� 692,456� Other operating income 489,711� 429,263� Total other income 2,194,778� 1,512,983� � Other expense: Salaries and employee benefits 5,617,490� 5,009,625� Occupancy and equipment expense 884,150� 839,963� Data processing 731,540� 627,074� Other operating expenses 1,376,177� 1,315,300� Total other expense 8,609,357� 7,791,962� � Income before income taxes 5,884,547� 4,045,441� Income tax expense 2,012,500� 1,286,868� � Net income $ 3,872,047� $ 2,758,573� � Basic earnings per share $ 1.37� $ 0.93� � Diluted earnings per share $ 1.15� $ 0.80�