Georgia-Carolina Bancshares, Inc., parent company of First Bank ofGeorgia, reported today net income of$981,000, or$.28per diluted common share, for the three months endedJune 30, 2011, compared to a net loss of$1,906,000, or($.54)per diluted common share, for the three months endedJune 30, 2010. The Company reported a net profit of$2,372,000, or$.67per diluted common share, for the six months endedJune 30, 2011, compared to a net loss of$1,068,000, or($.30)per diluted common share for the six months endedJune 30, 2010. Book value totaled$13.48per common share atJune 30, 2011, as compared to book value of$12.13per common share atJune 30, 2010.

Remer Y. Brinson III, President & CEO of the Company, stated "The primary reason for our increased income is the reduction in our provision for loan losses during the first half of 2011 compared to 2010. Our provision for loan losses during 2011 has totaled$551,000, compared to$5,792,000for the first half of 2010. Net charge offs in 2011 have totaled 0.42% of loans compared to 2.82% of loans during the first half of 2010."

"Core earnings of the Company remain strong. Over the past four quarters we have earned$4,973,000, or$1.41per diluted common share." Brinson continued, "All of our capital ratios continue to grow and are well above regulatory guidelines for 'well-capitalized' banks. Asset quality continues to be a primary focus in this weak economy. We have seen an increase in non-performing assets in the second quarter this year which totaled 5.12% of loans and foreclosed real estate atJune 30, 2011. This increase is primarily the result of the downgrading of one particular credit relationship. However we continue to maintain a strong loan loss reserve which totaled 2.47% of loans at the end of the second quarter." The ratio of the loan loss reserve to loans atJune 30, 2010was 1.87%.