GVBK Greenville First Bancshares Inc. (MM)

Greenville First Announces Strong Growth in Earnings and Expansion of Franchise GREENVILLE, S.C., April 19 /PRNewswire-FirstCall/ -- Greenville First Bancshares, Inc. (NASDAQ:GVBK), holding company for Greenville First Bank NA, today announced that net income for the first quarter of 2005 was $660 thousand, or $0.23 per diluted share, a 70% increase in net income when compared to $388 thousand, or $0.19 per diluted share for the same period in 2004. Return on average assets for the first quarter was 0.81% compared to 0.63% for the same quarter in 2004. Return on average shareholders' equity in 2005 was 9.39% compared to 13.42% for the first quarter in 2004. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 51.3% during 2005 compared to 53.4% for the 2004 first quarter. "The first quarter of 2005 was an exciting time for Greenville First," said Art Seaver, President and CEO. "On March 14, 2005, we opened our second office located on the Parkway at Thornblade and in the first three months have grown our loan portfolio by over $19 million. We are pleased to be able to expand our franchise while increasing earnings by over 70%." Total assets grew to $341.9 million as of March 31, 2005 compared to $258.8 million on March 31, 2004, an increase of 32.1%. Loans were $295.7 million at March 31, 2005, an increase of $66.3 million or 28.9% when compared with $229.4 million on March 31, 2004. Deposits grew over 26.4% to $218.9 million on March 31, 2005 compared to $173.2 million on March 31, 2004. Greenville First celebrated five years of operations on January 10, 2005. The bank's book value per share was $10.82 as of March 31, 2005, while the closing stock price was $21.00 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 ended March 31, 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 Ended March 31, 2005 2004 (In thousands, except per share amounts) Summary Results of Operations Data: Interest income $4,582 $2,967 Interest expense 1,901 1,034 Net interest income 2,681 1,933 Provision for loan losses 345 350 Net interest income after provision for loan losses 2,336 1,583 Noninterest income 213 162 Noninterest expense 1,484 1,119 Income before taxes 1,065 626 Income tax expense 405 238 Net income $660 $388 Per Share Data: Net income, basic $0.25 $0.22 Net income, diluted $0.23 $0.19 Book value $10.82 $6.70 Weighted average number of shares outstanding: Basic 2,648 1,725 Diluted 2,918 2,008 Performance Ratios: Return on average assets (1) 0.81% 0.63% Return on average equity (1) 9.39% 13.42% Net interest margin (1) 3.38% 3.25% Efficiency ratio (2) 51.28% 53.41% Growth Ratios and Other Data: Percentage change in net income 70.10% Percentage change in diluted net income per share 21.05% SUMMARY OF CONSOLIDATED FINANCIAL DATA, CONTINUED At March 31, 2005 2004 Summary Balance Sheet Data: Assets $341,878 $258,812 Investments securities 40,614 26,169 Loans (3) 295,708 229,409 Allowance for loan losses 4,073 3,043 Deposits 218,948 173,236 Securities sold under agreement to repurchase and federal funds purchased 18,572 14,632 Federal Home Loan Bank Advances 67,030 48,000 Junior subordinate debentures 6,186 6,186 Shareholders' equity 28,660 11,560 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (3) 0.39% 0.39% Nonperforming assets, past due and restructured to total assets 0.33% 0.35% Net charged-offs year to date to average total loans (3) 0.00% 0.01% Allowance for loan losses to nonperforming loans 357.79% 338.51% Allowance for loan losses to total loans (3) 1.38% 1.33% Capital Ratios: Average equity to average assets 8.61% 4.73% Leverage ratio 9.35% 5.41% Tier 1 risk-based capital ratio 11.58% 7.05% Total risk-based capital ratio 13.62% 8.30% Growth Ratios and Other Data: Percentage change in assets 32.10% Percentage change in loans (3) 28.90% Percentage change in deposits 26.39% Percentage change in equity 147.92% Loans to deposit ratio (3) 133.20% (1) Annualized for the three month periods. (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. (3) Includes nonperforming loans. 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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