GVBK Greenville First Bancshares Inc. (MM)

3rd Quarter Net Income Exceeds $1 Million, Year to Date Earnings up 18% GREENVILLE, S.C., Oct. 17 /PRNewswire-FirstCall/ -- Greenville First Bancshares, Inc. (NASDAQ:GVBK), holding company for Greenville First Bank NA, today announced that net income for the first nine months of 2006 was $2.8 million, or $0.87 per diluted share, an increase of 18% when compared to $2.4 million, or $0.75 per diluted share, for the same period in 2005. Net income for the third quarter of 2006 was $1.0 million, or $0.32 per diluted share, a 10% increase in net income when compared to $927 thousand, or $0.29 per diluted share, for the third quarter of 2005. Annualized return on average assets for the first nine months of 2006 was 0.86% compared to 0.92% for the same period in 2005. Annualized return on average shareholders' equity for the nine months ended September 30, 2006 was 11.79% compared to 10.93% for the nine month period in 2005. The company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) for the 2006 nine month period was 49.1% compared to 49.5% for the 2005 period. "I am pleased to report the outstanding accomplishments the Greenville First team has achieved during the first nine months of 2006," said Art Seaver, President and CEO. "Our investments in infrastructure continue to sustain the growth momentum of our company. Solid growth in earning assets and retail deposits enabled total assets to exceed $495 million and quarterly earnings to exceed $1 million." Total assets grew to $495.1 million as of September 30, 2006, compared to $375.3 million on September 30, 2005, an increase of 31.9%. Loans were $390.4 million at September 30, 2006, an increase of $66.0 million, or 20.4%, when compared with $324.3 million on September 30, 2005. Deposits grew 43.5% to $340.0 million on September 30, 2006, compared to $236.9 million on September 30, 2005. The Company's book value per share was $11.36 as of September 30, 2006, while the closing stock price on the NASDAQ Global Market was $18.74 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 nine months ended September 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 Nine Months Ended September 30, Ended September 30, 2006 2005 2006 2005 (Dollars in thousands, except share and per share data) Summary Results of Operations Data: Interest income $ 8,134 $ 5,669 $ 22,258 $ 15,480 Interest expense 4,441 2,564 11,642 6,773 Net interest income 3,693 3,105 10,616 8,707 Provision for loan losses 400 225 1,200 835 Net interest income after provision for loan losses 3,293 2,880 9,416 7,872 Noninterest income 113 201 403 633 Noninterest expense 1,854 1,586 5,413 4,619 Income before taxes 1,552 1,495 4,406 3,886 Income tax expense 532 568 1,574 1,477 Net income $ 1,020 $ 927 $ 2,832 $ 2,409 Per Share Data: (5) Net income, basic $ 0.35 $ 0.32 $ 0.97 $ 0.82 Net income, diluted $ 0.32 $ 0.29 $ 0.87 $ 0.75 Book value $ 11.36 $ 10.41 $ 11.36 $ 10.41 Weighted average number of shares outstanding: (5) Basic 2,934 2,926 2,931 2,921 Diluted 3,232 3,225 3,238 3,218 Performance Ratios: Return on average assets (1) 0.86% 1.02% 0.86% 0.92% Return on average equity (1) 12.25% 12.07% 11.79% 10.93% Net interest margin (1) 3.25% 3.45% 3.35% 3.39% Efficiency ratio (2) 48.71% 47.96% 49.13% 49.45% Growth Ratios and Other Data: Percentage change in net income from the same period of the previous year 10.03% 17.56% Percentage change in diluted net income per share from the same period of the previous year 10.34% 16.00% SUMMARY OF CONSOLIDATED FINANCIAL DATA, CONTINUED At September 30, 2006 2005 (Dollars in thousands) Summary Balance Sheet Data: Assets $495,139 $375,288 Investment securities 78,952 43,634 Loans (3) 390,360 324,312 Allowance for loan losses 4,620 4,584 Deposits 339,960 236,884 Securities sold under agreement to repurchase and federal funds purchased - 16,232 Federal Home Loan Bank Advances 104,500 81,500 Junior subordinated debentures 13,403 6,186 Shareholders' equity 33,334 30,462 Asset Quality Ratios: Nonperforming assets, past due and restructured loans to total loans (3) 0.37% 0.38% Nonperforming assets, past due and restructured loans to total assets 0.29% 0.32% Net charge-offs year to date to average total loans(3)(4) 0.39% 0.00% Allowance for loan losses to nonperforming loans 712.54% 376.35% Allowance for loan losses to total loans (3) 1.18% 1.41% Capital Ratios: Average equity to average assets 7.31% 8.39% Leverage ratio 10.12% 10.04% Tier 1 risk-based capital ratio 11.72% 12.21% Total risk-based capital ratio 12.98% 13.46% Growth Ratios and Other Data: Percentage change in assets 31.94% Percentage change in loans (3) 20.37% Percentage change in deposits 43.51% Percentage change in equity 9.43% Loans to deposit ratio (3) 114.83% (1) Annualized for the three and nine month periods. (2) Computed by dividing noninterest expense by the sum of net interest income and and noninterest income. (3) Includes nonperforming loans. (4) Annualized for the nine month period. (5) All share and 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, 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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