GVBK Greenville First Bancshares Inc. (MM)

Greenville First Announces Record Growth for 2004 Assets grow to over $315 million and net income to over $2 million GREENVILLE, S.C., Jan. 20 /PRNewswire-FirstCall/ -- Greenville First Bancshares, Inc. (NASDAQ:GVBK), holding company for Greenville First Bank NA, today announced that net income for the fourth quarter of 2004 was $704 thousand, or $0.24 per diluted share compared to $342 thousand, or $0.18 per diluted share for the same period in 2003. The company also reported net income for the year ended December 31, 2004 of $2.0 million, or $0.90 per diluted share, a 100% increase when compared to a net income of $1.0 million, or $0.53 per diluted share for the previous year, 2003. As a result of the $2.0 million in net income in 2004 and the $15.0 million in net proceeds from the secondary stock offering that was completed in October of 2004, the Company's book value per share increased 63.3%, from $6.49 on December 31, 2003 to $10.60 on December 31, 2004. Return on average assets for the year ended December 31, 2004 was 0.73% compared to 0.52% for the same period in 2003. Return on average shareholders' equity in 2004 was 12.37% compared to 9.28% for the same period in 2003. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 51.58% during 2004 compared to 59.04% for the year 2003. "2004 was a year of outstanding growth and exceptional results for our employees and shareholders," said Art Seaver, President and CEO. "Growing our assets to over $315 million and doubling our earnings to $2 million is evidence that our Client First level of service has been embraced by the Greenville market, and provides us with significant momentum as we expand with two new offices in 2005." Total assets grew to $315.8 million as of December 31, 2004 compared to $230.8 million on December 31, 2003, or an increase of 36.8%. Loans were $276.6 million at December 31, 2004, an increase of $70.5 million or 34.2% when compared with $206.1 million at the end of 2003. Deposits grew over 21.2% to $204.8 million on December 31, 2004 compared to $168.9 million on December 31, 2003. Greenville First celebrated five years of operations on January 10, 2005. The closing stock price on December 31, 2004 was $19.61 per share. FORWARD-LOOKING STATEMENTS Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our company or any person that future events, plans, or expectations contemplated by our company will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. FINANCIAL CONTACT: JIM AUSTIN 864-679-9070 MEDIA CONTACT: EDDIE TERRELL 864-679-9016 WEB SITE: http://www.greenvillefirst.com/ SUMMARY CONSOLIDATED FINANCIAL DATA Our summary consolidated financial data as of and for the three months and years ended December 31, 2004 and 2003 have not been audited but, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles. Three Months Years (In thousands, except per Ended December 31, Ended December 31, share amounts) 2004 2003 2004 2003 Summary Results of Operations Data: Interest income $4,187 $2,708 $13,965 $9,722 Interest expense 1,624 933 5,317 3,618 Net interest income 2,563 1,775 8,648 6,104 Provision for loan losses 285 300 1,310 1,050 Net interest income after provision for loan losses 2,278 1,475 7,338 5,054 Noninterest income 214 76 761 422 Noninterest expense 1,357 999 4,853 3,853 Income before taxes 1,135 552 3,246 1,623 Income tax expense 431 210 1,233 617 Net income $704 $342 $2,013 $1,006 Per Share Data: (2) Net income, basic $0.27 $0.20 $1.02 $0.58 Net income, diluted $0.24 $0.18 $0.90 $0.53 Book value $10.60 $6.49 $10.60 $6.49 Weighted average number of shares outstanding: Basic 2,648 1,725 1,972 1,725 Diluted 2,916 1,900 2,240 1,881 Performance Ratios: Return on average assets (3) 0.90% 0.62% 0.73% 0.52% Return on average equity (3) 10.09% 12.06% 12.37% 9.28% Net interest margin (3) 3.35% 3.30% 3.17% 3.24% Efficiency ratio (4) 48.87% 53.97% 51.58% 59.04% Growth Ratios and Other Data: Percentage change in net income 105.85% 100.10% Percentage change in diluted net income per share 33.33% 69.81% SUMMARY CONSOLIDATED FINANCIAL DATA, CONTINUED At December 31, 2004 2003 Summary Balance Sheet Data: Assets $315,811 $230,841 Investment securities 29,163 15,759 Loans (1) 276,630 206,077 Allowance for loan losses 3,717 2,705 Deposits 204,864 168,964 Securities sold under agreement to repurchase and federal funds purchased 13,100 9,297 Other borrowed funds 60,660 32,500 Junior subordinate debentures 6,186 6,186 Shareholders' equity 28,079 11,187 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (1) 0.27% 0.21% Nonperforming assets, past due and restructured loans to total assets 0.24% 0.19% Net charge-offs year to date to average total loans (1) 0.12% 0.10% Allowance for loan losses to nonperforming loans 502.84% 609.35% Allowance for loan losses to total loans (1) 1.34% 1.30% Capital Ratios: Average equity to average assets 5.87% 5.57% Leverage ratio 10.79% 6.09% Tier 1 risk-based capital ratio 13.13% 7.78% Total risk-based capital ratio 14.38% 10.24% Growth Ratios and Other Data: Percentage change in assets 36.81% Percentage change in loans (1) 34.24% Percentage change in deposits 21.25% Percentage change in equity 151.00% Loan to deposit ratio (1) 133.22% (1) Includes nonperforming loans. (2) Adjusted for all years presented giving retroactive effect to a three-for-two common stock split in November 2003. (3) Annualized for the three month periods. (4) Computed by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income, net of securities gains or losses. DATASOURCE: Greenville First Bancshares, Inc. CONTACT: Financial, Jim Austin, +1-864-679-9070, or Media, Eddie Terrell, +1-864-679-9016, both of Greenville First Bancshares, Inc. Web site: http://www.greenvillefirst.com/

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