GVBK Greenville First Bancshares Inc. (MM)

Greenville First Reports 99% Increase in Earnings for Second Quarter 2005 Assets grow to over $357 million GREENVILLE, S.C., July 19 /PRNewswire-FirstCall/ -- Greenville First Bancshares, Inc. (NASDAQ:GVBK), holding company for Greenville First Bank NA, today announced that net income for the second quarter of 2005 increased 99% to $822 thousand, or $0.28 per diluted share compared to $414 thousand, or $0.21 per diluted share for the same period in 2004. For the first six months of 2005, net income was $1.5 million, or $0.51 per diluted share, an 85% increase when compared to a net income of $802 thousand, or $0.40 per diluted share for the same period in 2004. Return on average assets for the six months ended June 30, 2005 was 0.87% compared to 0.65% for the same period in 2004. Return on average shareholders' equity was 10.36% compared to 13.95% for the same period in 2004. The decline in return on shareholders' equity resulted from a significant increase in capital from the Company's secondary offering in the later part of 2004. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 50.27% during 2005 compared to 54.35% for the six months ended June 30, 2004. "I am proud of the Greenville First team and their tremendous accomplishments achieved during the first six months of 2005," said Art Seaver, President and CEO. "Assets have grown $41 million year to date and the significant increase in earnings is evidence of the strong momentum of our company. We will continue to strategically increase our presence in the Greenville community and look forward to opening our Augusta Road office in October." Total assets grew to $357.2 million as of June 30, 2005 compared to $273.4 million on June 30, 2004, or an increase of 30.6%. Loans were $311.2 million at June 30, 2005, an increase of $63.6 million or 25.7% when compared with $247.6 million at June 30, 2004. Deposits grew over $50.9 million to $228.9 million on June 30, 2005 compared to $178.0 million on June 30, 2004. The closing stock price on June 30, 2005 was $20.75 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 six months ended June 30, 2005 and 2004 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 Six Months Ended June 30, Ended June 30, 2005 2004 2005 2004 (In thousands, except per share amounts) Summary Results of Operations Data: Interest income $5,228 $3,175 $9,810 $6,143 Interest expense 2,307 1,215 4,208 2,250 Net interest income 2,921 1,960 5,602 3,893 Provision for loan losses 265 300 610 650 Net interest income after provision for loan losses 2,656 1,660 4,992 3,243 Noninterest income 218 201 431 363 Noninterest expense 1,549 1,194 3,033 2,313 Income before taxes 1,325 667 2,390 1,293 Income tax expense 503 253 908 491 Net income $822 $414 $1,482 $802 Per Share Data: Net income, basic $0.31 $0.24 $0.56 $0.46 Net income, diluted $0.28 $0.21 $0.51 $0.40 Book value $11.11 $6.91 $11.11 $6.91 Weighted Average Number of Shares Outstanding: Basic 2,659 1,725 2,654 1,725 Diluted 2,937 1,989 2,928 1,998 Performance Ratios: Return on average assets (2) 0.93% 0.62% 0.87% 0.65% Return on average equity (2) 11.22% 14.13% 10.36% 13.95% Net interest margin (2) 3.36% 3.07% 3.35% 3.15% Efficiency ratio (3) 49.35% 55.25% 50.27% 54.35% Growth Ratios and Other Data: Percentage change in net income 98.56% 84.79% Percentage change in diluted net income per share 33.33% 27.50% SUMMARY CONSOLIDATED FINANCIAL DATA, CONTINUED At June 30, 2005 2004 Summary Balance Sheet Data: Assets $357,159 $273,393 Investment securities 40,370 20,885 Loans (1) 311,220 247,583 Allowance for loan losses 4,377 3,176 Deposits 228,876 177,987 Securities sold under agreement to repurchase and federal funds purchased 17,029 13,565 Other borrowed funds 72,500 61,400 Junior subordinate debentures 6,186 6,186 Shareholders' equity 29,555 11,941 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (1) 0.21% 0.30% Nonperforming assets, past due and restructured loans to total assets 0.19% 0.27% Net charge-offs year to date to average total loans (1) 0.00% 0.08% Allowance for loan losses to nonperforming loans 661.18% 731.01% Allowance for loan losses to total loans (1) 1.41% 1.28% Capital Ratios: Average equity to average assets 8.40% 4.53% Leverage ratio 9.87% 6.00% Tier 1 risk-based capital ratio 12.14% 7.05% Total risk-based capital ratio 13.39% 9.20% Growth Ratios and Other Data: Percentage change in assets 30.64% Percentage change in loans (1) 25.70% Percentage change in deposits 28.59% Percentage change in equity 147.51% Loan to deposit ratio (1) 135.98% (1) Includes nonperforming loans. (2) Annualized for the three and six month periods. (3) 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 Contact, Jim Austin, +1-864-679-9070, or Media Contact, Eddie Terrell, +1-864-679-9016, both of Greenville First Bancshares, Inc. Web site: http://www.greenvillefirst.com/

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