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 2007 of $738,085, or $.26 per share. Same quarter earnings for 2006 were $1,055,600, or $.37 per share, which included a one time gain of $290,500 or $.10 per share. Total assets were $350,102,220 at March 31, 2007 as compared to $318,013,177 at December 31, 2006. 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 May 15, 2007 to holders of record on April 30, 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 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 March 31, 2007 December 31, 2006 Assets: Cash and cash equivalents: Cash and due from banks $ 7,027,919� $ 9,928,755� Interest-bearing deposits in other banks 569,416� 331,334� Federal funds sold � 15,816,000� � 6,000� Cash and cash equivalents � 23,413,335� � 10,266,089� Investments securities: Securities available-for-sale 35,816,476� 35,169,753� Other investments � 1,237,842� � 1,278,642� � 37,054,318� � 36,448,395� � Loans net of allowance for loan losses of $3,394,714 and $3,312,946 respectively 269,341,924� 251,529,119� � Accrued interest receivable 3,153,322� 3,684,846� Premises and equipment, net 9,324,853� 8,866,607� Bank owned life insurance 5,129,196� 5,079,057� Other assets � 2,685,272� � 2,139,064� Total assets $ 350,102,220� $ 318,013,177� � Liabilities: Deposits: Noninterest-bearing $ 33,296,963� $ 32,483,895� NOW 29,484,801� 31,574,534� Savings 28,612,574� 25,714,143� Time deposits $100,000 and over 115,563,681� 108,702,675� Other time deposits � 85,021,845� � 63,980,783� Total deposits 291,979,864� 262,456,030� � Securities sold under agreements to repurchase 10,217,346� 314,972� Federal funds purchased 0� 8,449,000� 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 � 2,762,152� � 2,655,194� Total liabilities � 321,661,362� � 290,577,196� � Shareholders' Equity Preferred stock; no par value, 5,000,000 shares authorized; 163,958 shares issued and outstanding 2,295,412� 2,295,412� Common stock; no par value, 10,000,000 shares authorized; 2,813,074 shares issued and outstanding 15,351,986� 14,948,860� Retained earnings 10,779,562� 10,192,699� Accumulated other comprehensive income � 13,898� � (990) Total shareholders' equity � 28,440,858� � 27,435,981� Total liabilities and shareholders' equity $ 350,102,220� $ 318,013,177� Georgia Bancshares, Inc. Condensed Consolidated Statements of Income � � Three Months Ended March 31, � 2007� � 2006� Interest income: Interest and fees on loans $ 5,759,641� $ 4,633,639� Interest and dividends on investments 408,547� 304,922� Interest on federal funds sold and other interest income � 124,528� � 31,082� � �Total interest income � 6,292,716� � 4,969,643� � Interest expense: Interest on deposits 2,648,272� 1,607,887� Interest on securities sold under agreements to repurchase 86,270� 492� Interest on other borrowed funds � 314,401� � 250,059� �Total interest expense � 3,048,943� � 1,858,438� � �Net interest income 3,243,773� 3,111,205� � Provision for loan losses � 172,500� � 153,100� � �Net interest income after provision for loan losses � 3,071,273� � 2,958,105� � Other income: Service charges on deposit accounts 150,968� 96,975� Gains (losses) on sale of other assets 4,336� 579,312� Gains on sales of securities available-for-sale 0� 0� Mortgage banking income 179,770� 147,549� Other operating income � 122,129� � 116,020� �Total other income � 457,203� � 939,856� � Other expense: Salaries and employee benefits 1,473,928� 1,353,682� Occupancy and equipment expense 252,456� 199,482� Data processing 215,865� 172,712� Other operating expenses � 406,942� � 358,485� �Total other expense � 2,349,191� � 2,084,361� � Income before income taxes 1,179,265� 1,813,600� Income tax expense � 441,200� � 758,000� � Net income $ 738,085� $ 1,055,600� � Basic earnings per share $ 0.26� $ 0.37� � Diluted earnings per share $ 0.22� $ 0.32�