GABA Georgia Bancshares Inc (CE)

Georgia Bancshares, Inc., (OTCBB:GABA), the parent company of The Bank of Georgia, today announced net income for the second quarter of 2007 of $997,652, or $.34 per share. Same quarter earnings for 2006 were $968,678, or $.34 per share. Net income for the six months ended June 30, 2007 was $1,735,737 or $.60 per share as compared to $2,024,278 or $.71 per share for the same period in 2006, which included a one time gain of $290,000 or $.10 per share. Total assets were $374,951,616 at June 30, 2007 as compared to $318,013,177 at December 31, 2006. Today, the Board of Directors declared a cash dividend of $.10 per share for common shareholders and $.11 per share for Series A preferred shareholders. The dividends are payable on August 15, 2007 to holders of record on July 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 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 � June 30, December 31, � 2007 � � 2006 � Assets: Cash and cash equivalents: Cash and due from banks $ 10,229,045 $ 9,928,755 Interest-bearing deposits in other banks 480,804 331,334 Federal funds sold � 29,378,000 � � 6,000 � Cash and cash equivalents � 40,087,849 � � 10,266,089 � Investments securities: Securities available-for-sale 34,355,575 35,169,753 Other investments � 1,237,842 � � 1,278,642 � � 35,593,417 � � 36,448,395 � � Loans net of allowance for loan losses of $3,520,279 and $3,312,946 respectively 276,703,952 251,529,119 � Accrued interest receivable 4,049,205 3,684,846 Premises and equipment, net 10,244,621 8,866,607 Bank owned life insurance 5,178,372 5,079,057 Other assets � 3,094,200 � � 2,139,064 � Total assets $ 374,951,616 � $ 318,013,177 � � Liabilities: Deposits: Noninterest-bearing $ 33,796,608 $ 32,483,895 NOW 40,386,638 31,574,534 Savings 46,518,452 25,714,143 Time deposits $100,000 and over 110,656,909 108,702,675 Other time deposits � 84,371,158 � � 63,980,783 � Total deposits 315,729,765 262,456,030 � Securities sold under agreements to repurchase 10,700,179 314,972 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 � 2,686,820 � � 2,655,194 � Total liabilities � 345,818,764 � � 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; 2,947,845 shares issued and outstanding 15,703,496 14,948,860 Retained earnings 11,623,773 10,192,699 Accumulated other comprehensive income � (489,829 ) � (990 ) Total shareholders' equity � 29,132,852 � � 27,435,981 � Total liabilities and shareholders' equity $ 374,951,616 � $ 318,013,177 � Georgia Bancshares, Inc. Condensed Consolidated Statements of Income (Unaudited) � � Three Months Ended June 30, � 2007 � 2006 Interest income: Interest and fees on loans $ 6,170,267 $ 4,884,369 Interest and dividends on investments 422,420 330,080 Interest on federal funds sold and other interest income � 210,697 � 110,926 � Total interest income � 6,803,384 � 5,325,375 � Interest expense: Interest on deposits 2,938,005 1,866,573 Interest on securities sold under agreements to repurchase 126,291 617 Interest on other borrowed funds � 244,185 � 238,280 Total interest expense � 3,308,481 � 2,105,470 � Net interest income 3,494,903 3,219,905 � Provision for loan losses � 127,500 � 113,100 � Net interest income after provision for loan losses � 3,367,403 � 3,106,805 � Other income: Service charges on deposit accounts 154,008 110,956 Gains (losses) on sale of other assets 0 0 Gains on sales of securities available-for-sale 0 0 Mortgage banking income 238,343 182,881 Other operating income � 129,477 � 124,576 Total other income � 521,828 � 418,413 � Other expense: Salaries and employee benefits 1,596,155 1,382,098 Occupancy and equipment expense 280,082 227,199 Data processing 212,225 174,851 Other operating expenses � 393,667 � 333,892 Total other expense � 2,482,129 � 2,118,040 � Income before income taxes 1,407,102 1,407,178 Income tax expense � 409,450 � 438,500 � Net income $ 997,652 $ 968,678 � Basic earnings per share $ 0.34 $ 0.34 � Diluted earnings per share $ 0.30 $ 0.29 Georgia Bancshares, Inc. Condensed Consolidated Statements of Income � � Six Months Ended June 30, � 2007 � 2006 Interest income: Interest and fees on loans $ 11,929,908 $ 9,518,008 Interest and dividends on investments 830,967 635,002 Interest on federal funds sold and other interest income � 335,225 � 142,008 � Total interest income � 13,096,100 � 10,295,018 � Interest expense: Interest on deposits 5,586,277 3,474,460 Interest on securities sold under agreements to repurchase 212,561 1,109 Interest on other borrowed funds � 558,586 � 488,339 Total interest expense � 6,357,424 � 3,963,908 � Net interest income 6,738,676 6,331,110 � Provision for loan losses � 300,000 � 266,200 � Net interest income after provision for loan losses � 6,438,676 � 6,064,910 � Other income: Service charges on deposit accounts 304,976 207,931 Gains (losses) on sale of other assets 4,336 579,312 Gains on sales of securities available-for-sale 0 0 Mortgage banking income 418,113 330,430 Other operating income � 251,606 � 240,596 Total other income � 979,031 � 1,358,269 � Other expense: Salaries and employee benefits 3,070,083 2,735,780 Occupancy and equipment expense 532,538 426,681 Data processing 428,090 347,563 Other operating expenses � 800,609 � 692,377 Total other expense � 4,831,320 � 4,202,401 � Income before income taxes 2,586,387 3,220,778 Income tax expense � 850,650 � 1,196,500 � Net income $ 1,737,737 $ 2,024,278 � Basic earnings per share $ 0.60 $ 0.71 � Diluted earnings per share $ 0.52 $ 0.61