GVBK Greenville First Bancshares Inc. (MM)

GREENVILLE, S.C., July 18 /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 2006 was $970 thousand, or $0.30 per diluted share, an 18.0% increase in net income when compared to $822 thousand, or $0.26 per diluted share, for the same period in 2005. Return on average assets for the second quarter of 2006 was 0.88% compared to 0.93% for the same quarter in 2005. Return on average shareholders' equity for the second quarter in 2006 was 12.14% compared to 11.19% for the second quarter in 2005. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 48.4% for the 2006 second quarter compared to 49.3% for the 2005 second quarter. "I am proud of the Greenville First team and their outstanding accomplishments during the first six months of 2006," said Art Seaver, President and CEO. "Assets have grown $49.9 million during this period with $39.1 million of the total growth occurring in our loan portfolio. In addition, deposit growth has been tremendous for our Company at $40.8 million during the first and second quarters of 2006, largely due to the addition of our Parkway and Augusta Road offices in 2005. Our second quarter results reflect the continued momentum of Greenville First." Total assets grew to $455.3 million as of June 30, 2006, compared to $357.2 million on June 30, 2005, an increase of 27.5%. Loans were $377.6 million at June 30, 2006, an increase of $66.4 million, or 21.3%, when compared with $311.2 million on June 30, 2005. Deposits grew 28.9% to $294.9 million on June 30, 2006, compared to $228.9 million on June 30, 2005. "We are very excited with the growth of our Company. We are also pleased to announce a 10% stock dividend for our shareholders," stated Seaver. "We believe this distribution will enhance the liquidity of our shareholders' investment," added Seaver. Shareholders of record on July 24, 2006 will receive the additional shares on August 14, 2006, with fractional shares paid in cash. The earnings per share and book value per share amounts for all periods presented have been adjusted to reflect the 10% stock dividend. The Company's book value per share was $10.90 as of June 30, 2006, while the closing stock price was $22.22 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 projected growth, or loan quality, 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 and six months ended June 30, 2006 and 2005 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, 2006 2005 2006 2005 (Dollars in thousands, except per share data) Summary Results of Operations Data: Interest income $7,498 $5,228 $14,124 $9,810 Interest expense 3,935 2,307 7,201 4,208 Net interest income 3,563 2,921 6,923 5,602 Provision for loan losses 400 265 800 610 Net interest income after provision for loan losses 3,163 2,656 6,123 4,992 Noninterest income 174 218 329 431 Noninterest expense 1,809 1,549 3,599 3,033 Income before taxes 1,528 1,325 2,853 2,390 Income tax expense 558 503 1,041 908 Net income $970 $822 $1,812 $1,482 Per Share Data: (5) Net income, basic 0.33 $0.28 $0.62 $0.51 Net income, diluted $ 0.30 $0.26 $0.56 $0.46 Book value $10.90 $10.10 $10.90 $10.10 Weighted average number of shares outstanding: (5) Basic 2,932 2,925 2,929 2,919 Diluted 3,236 3,231 3,241 3,221 Performance Ratios: Return on average assets (1) 0.88 % 0.93 % 0.86 % 0.87 % Return on average equity (1) 12.14 % 11.19 % 11.54 % 10.36 % Net interest margin (1) 3.33 % 3.36 % 3.40 % 3.35 % Efficiency ratio (2) 48.42 % 49.34 % 49.63 % 50.27 % Growth Ratios and Other Data: Percentage change in net income from the same quarter of the previous year 18.05 % 22.27 Percentage change in diluted net income per share from the same quarter of the previous year 15.38 % 21.74 % At June 30, 2006 2005 (Dollars in thousands) Summary Balance Sheet Data: Assets $455,256 $357,159 Investment securities 60,627 40,370 Loans (3) 377,633 311,220 Allowance for loan losses 4,234 4,377 Deposits 294,941 228,876 Securities sold under agreement to repurchase and federal funds purchased 13,730 17,029 Federal Home Loan Bank Advances 97,500 72,500 Junior subordinate debentures 13,403 6,186 Shareholders' equity 31,976 29,555 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (3) 0.60 % 0.21 % Nonperforming assets, past due and restructured loans to total assets 0.50 % 0.19 % Net charge-offs year to date to average total loans (3)(4) 0.58 % 0.00 % Allowance for loan losses to nonperforming loans 620.96 % 662.26 % Allowance for loan losses to total loans (3) 1.12 % 1.41 % Capital Ratios: Average equity to average assets 7.48 % 8.40 % Leverage ratio 10.24 % 10.00 % Tier 1 risk-based capital ratio 12.48 % 12.50 % Total risk-based capital ratio 13.74 % 13.70 % Growth Ratios and Other Data: Percentage change in assets 27.47 % Percentage change in loans (3) 21.34 % Percentage change in deposits 28.87 % Percentage change in equity 8.19 % Loans to deposit ratio (3) 128.04 % (1) Annualized for the three and six month periods. (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income. (3) Includes nonperforming loans. (4) Annualized for the six month period. (5) All per share data has been restated to reflect the ten percent stock dividend. FINANCIAL CONTACT: JIM AUSTIN 864-679-9070 MEDIA CONTACT: EDDIE TERRELL 864-679-9016 WEB SITE: http://www.greenvillefirst.com/ 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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