GVBK Greenville First Bancshares Inc. (MM)

Greenville First Bank Reports Third Quarter Results - Net income of $1.3 million for the first nine months of 2004 GREENVILLE, S.C., Oct. 19 /PRNewswire-FirstCall/ -- Greenville First Bancshares Inc. (NASDAQ:GVBK), holding company for Greenville First Bank NA, today announced a significant increase in both earnings and assets for the third quarter and nine months ended September 30, 2004. For the third quarter, Greenville First had net income of $507,000, or $0.25 in diluted earnings per share, compared to $267,000, or $0.14 per share, for the same period last year. For the first nine months of 2004, net income was $1.3 million, or $0.65 per diluted share, an increase of 97% compared to $664,000, or $0.35 per share, reported in the first nine months of 2003. Net interest income in the third quarter was $2.2 million compared to $1.6 million for the third quarter in 2003, an increase of $628,000. Total assets were $293 million on September 30, 2004, which represents an increase of 36% from the same period a year ago. "The third quarter was a period of significant accomplishments for Greenville First," stated Art Seaver, President and CEO. "Our momentum is evident as assets grew to $293 million and quarterly earnings increased 90% over the same period a year ago. Also, the company raised an additional $16.4 million in new equity, which provides the foundation for continued growth. The company received $14.3 million on September 24, 2004, and received an additional $2.1 million on October 15, 2004. The additional funds received in October relate to the company's underwriters exercising their option to purchase an additional 120,000 shares. The total number of new shares issued by Greenville First in the offering was 920,000 shares at a price of $18.875 per share. The net proceeds to the company after offering costs and underwriter's discount were approximately $15.0 million. The $62.1 million increase in total assets in the first nine months resulted primarily from a $58.1 million increase in loans and a $2.4 million increase in investments. Greenville First ended the period with $264.2 million in loans and $21.0 million in investments. The company funded the growth with a $14.3 million increase in deposits, a $32.6 million increase in borrowings, and a $14.3 million increase in additional capital. The company had $183.2 million in deposits, $80.6 million in borrowings, and $25.5 million in shareholders' equity at September 30, 2004. The company anticipates replacing a portion of the short-term borrowings with retail deposits which it intends to generate through an aggressive marketing campaign and the future offices it plans to open in the first half of 2005 at The Parkway near Thornblade Country Club and on Augusta Road. The closing stock price for Greenville First Bancshares on October 18, 2004 was $19.39 per share. Additional financial data is available on the Bank's web site at http://www.greenvillefirst.com/ . Contacts: Art Seaver Eddie Terrell Jim Austin President Executive Vice President Executive Vice President Chief Executive Officer Public Relations Chief Financial Officer (864) 679-9010 (864) 679-9016 (864) 679-9070 *See attachment for company's disclosure related to "Forward-Looking Statements" and Summary Consolidated Financial Data. 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. SUMMARY CONSOLIDATED FINANCIAL DATA Our summary consolidated financial data as of and for the three months and nine months ended September 30, 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 Nine Months Ended September 30, Ended September 30, 2004 2003 2004 2003 (In thousands, except per share amounts) Summary Results of Operations Data: Interest income $3,635 $2,495 $ 9,778 $7,013 Interest expense 1,444 932 3,693 2,685 Net interest income 2,191 1,563 6,085 4,328 Provision for loan losses 375 250 1,025 750 Net interest income after provision for loan losses 1,816 1,313 5,060 3,578 Noninterest income 185 115 547 346 Noninterest expense 1,183 997 3,496 2,854 Income before taxes 818 431 2,111 1,071 Income tax expense 311 164 802 407 Net income $507 $267 $1,309 $664 Per Share Data: (2) Net income, basic $0.28 $0.16 $0.75 $0.38 Net income, diluted $0.25 $0.14 $0.65 $0.35 Book value $10.09 $6.28 $10.09 $6.28 Weighted average number of shares outstanding: Basic 1,789 1,725 1,747 1,725 Diluted 2,045 1,886 2,014 1,874 Performance Ratios: Return on average assets (3) 0.71% 0.52% 0.66% 0.48% Return on average equity (3) 15.02% 9.76% 14.15% 8.29% Net interest margin (3) 3.15% 3.16% 3.15% 3.21% Efficiency ratio (4) 49.79% 59.42% 52.71% 61.06% Growth Ratios and Other Data: Percentage change in net income 89.89% 97.14% Percentage change in diluted net income per share 78.57% 85.71% SUMMARY CONSOLIDATED FINANCIAL DATA, CONTINUED At September 30, 2004 2003 Summary Balance Sheet Data: Assets $292,941 $214,757 Investment securities 21,007 19,818 Loans (1) 267,832 185,890 Allowance for loan losses 3,573 2,461 Deposits 183,232 156,094 Securities sold under agreement to repurchase and federal funds purchased 13,805 -- Other borrowed funds 60,610 40,000 Trust note 6,186 6,186 Shareholders' equity 25,488 10,827 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (1) 0.18% 0.22% Nonperforming assets, past due and restructured loans to total assets 0.18% 0.21% Net charge-offs year to date to average total loans (1) 0.07% 0.07% Allowance for loan losses to nonperforming loans 1980.30% 604.67% Allowance for loan losses to total loans (1) 1.33% 1.31% Capital Ratios: Average equity to average assets 4.66% 5.04% Leverage ratio 11.03% 7.00% Tier 1 risk-based capital ratio 13.03% 8.30% Total risk-based capital ratio 14.28% 11.00% Growth Ratios and Other Data: Percentage change in assets 36.41% Percentage change in loans (1) 44.08% Percentage change in deposits 17.39% Percentage change in equity 135.41% Loan to deposit ratio (1) 146.17% (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 or nine 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: Art Seaver, President, Chief Executive Officer, +1-864-679-9010, or Eddie Terrell, Executive Vice President, Public Relations, +1-864-679-9016, or Jim Austin, Executive Vice President, Chief Financial Officer, +1-864-679-9070, all of Greenville First Bancshares Inc. Web site: http://www.greenvillefirst.com/

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