GABA Georgia Bancshares Inc (CE)

Georgia Bancshares, Inc., (OTC BB:GABA.OB), the parent company of The Bank of Georgia, today announced net income of $.2 million or $0.07 per share for the three months ended March 31, 2008, a 72.8% decrease when compared to $.7 million or $0.26 per share for the same period in 2007. Total assets were $377.1 million at March 31, 2008, a 7.7% increase compared to $350.1 million at March 31, 2007. Loans grew 24.8% to $304.3 million at March 31, 2008 compared to $272.7 million at March 31, 2007. Regarding the challenges related to the downturn in the residential housing market, The Bank of Georgia has remained proactive in aggressively identifying and dealing with problem credits. Accordingly, our allowance for loan losses at March 31, 2008 totaled $4.5 million or 1.49% of total loans to prepare for any further credit issues that may develop. Net charge-offs against the allowance for loan losses during the first three months of 2008 totaled $280 thousand. This compares with $90 thousand during the same three month period in 2007 and $1.1 million for the entire year 2007. At March 31, 2008 non-performing assets were $5.9 million as compared to $5.6 million at year end 2007. At its regular monthly meeting, 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 May 15, 2008 to holders of record on April 30, 2008. 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 nine 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. Financial Highlights (In Thousands, Except Per Share Data) � � For the Three Months Ended � March 31, 2008 � March 31, 2007 Total interest income $ 6,078 $ 6,293 Total interest expense � 3,154 � � 3,049 � Net interest income 2,924 3,244 Provision for loan losses � 345 � � 173 � Net interest income after provision 2,579 3,071 Total other income 421 457 Total other expense � 2,728 � � 2,349 � Income before income taxes 272 1,179 Income tax expense � 72 � � 441 � Net earnings $ 200 � $ 738 � � Per Share Data: Common shares outstanding - end of period 3,010,023 2,888,438 Weighted average shares outstanding 3,010,023 2,846,984 Weighted average diluted shares outstanding 3,278,464 3,368,533 Basic net earnings per share $ 0 .07 $ 0 .26 Diluted net earnings per share $ 0 .06 $ 0 .22 Cash dividends declared (common) $ 0 .10 $ 0 .05 Cash dividends declared (preferred) $ 0 .11 $ 0 .055 Book value (common) $ 9 .13 $ 9 .05 � At Period End: Loans, gross $ 304,324 $ 272,737 Allowance for loan losses $ 4,545 $ 3,395 Total assets $ 377,129 $ 350,102 Total deposits $ 307,403 $ 291,980 Shareholders' equity $ 29,772 $ 28,441 � Key Performance Ratios: Return on average assets 0 .22 % 0 .89 % Return on average equity 2 .69 % 10 .66 % Net interest margin 3 .58 % 4 .48 % Dividend payout ratio 159 .25 % 20 .49 % Total efficiency ratio 81 .54 % 60 .84 % � Asset Quality Ratios: Non-performing assets / loans & OREO 1 .92 % 0 .31 % Allowance for loan losses / total loans 1 .49 % 1 .24 % Allowance for loan losses / non-performing assets 76 .36 % 399 .53 % Allowance for loan losses / total capital 12 .55 % 9 .95 % Net charge-offs / average loans 0 .09 % 0 .03 % � Capital Ratios: Equity / assets 7 .89 % 8 .12 % Tier 1 leverage ratio 9 .83 % 10 .56 % Total risk based capital ratio 12 .25 % 12 .63 % �