##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 
 (Mark One)
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 For the fiscal year ended December 31, 2005
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File No. 0-22891
 GEORGIA-CAROLINA BANCSHARES, INC.
 (Exact name of registrant as specified in its charter)
 Georgia
    
    58-2326075(State of Incorporation)
    
    (I.R.S. Employer Identification Number)3527 Wheeler RoadAugusta, Georgia
    
    30909(Address of Principal Executive Offices)
    
    (Zip Code)
 (706) 731-6600
 (Registrants telephone number, including area code)
 Securities registered under Section 12(b) of the Act:
 Title of Each Class
    
    Name of each exchange on which registeredNone
    
    None
 Securities registered under Section 12(g) of the Exchange Act:
 o þ
 o þ
 þ o
 o
  o o þ
 o þ
  DOCUMENTS INCORPORATED BY REFERENCE




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##### 



GEORGIA-CAROLINA BANCSHARES, INC.
 2005 Form 10-K Annual Report
 TABLE OF CONTENTS
  
 Item Number
    
    
    
    Page orIn Form 10-K
    
    Description
    
    LocationPART IItem 1.
    
    Business
    
    
    1Item 1A.
    
    Risk Factors
    
    
    9Item 1B.
    
    Unresolved Staff Comments
    
    
    13Item 2.
    
    Properties
    
    
    13Item 3.
    
    Legal Proceedings
    
    
    13Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    14PART IIItem 5.
    
    Market for the Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
    
    
    14Item 6.
    
    Selected Financial Data
    
    
    15Item 7.
    
    Managements Discussion and Analysis of Financial Condition
and Results of Operation
    
    
    17Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    34Item 8.
    
    Financial Statements and Supplementary Data
    
    
    34Item 9.
    
    Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
    
    
    35Item 9A.
    
    Controls and Procedures
    
    
    35Item 9B.
    
    Other Information
    
    
    35PART IIIItem 10.
    
    Directors and Executive Officers of the Registrant
    
    
    35Item 11.
    
    Executive Compensation
    
    
    35Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
    
    
    35Item 13.
    
    Certain Relationships and Related Transactions
    
    
    36Item 14.
    
    Principal Accountant Fees and Services
    
    
    36PART IVItem 15.
    
    Exhibits and Financial Statement Schedules
    
    
    36SignaturesEX-21.1 SUBSIDIARIES OF THE REGISTRANTEX-23.1 CONSENT OF CHERRY, BEKAERT & HOLLLAND, LLPEX-31.1 SECTION 302, CERTIFICATION OF THE CEOEX-31.2 SECTION 302, CERTIFICATION OF THE PFOEX-32.1 SECTION 906, CERTIFICATION OF THE CEO & PFOEX-99.1 FINANCIAL STATEMENTS




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Special Note Regarding Forward-Looking Statements
  
 PART I
 
 Item 1 . Business
 General




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Branch
    
    Date OpenedHill Street Office, Thomson, Georgia
    
    January 1989Daniel Village Office, Augusta, Georgia
    
    March 1999West Town Office, Martinez, Georgia
    
    October 1999Medical Center Office, Augusta, Georgia
    
    January 2001Furys Ferry Road Office, Martinez, Georgia
    
    April 2002Main Office, Augusta, Georgia
    
    September 2005
    Market Area and Competition
   Asset/Liability Management
  2




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Correspondent Banking
   Data Processing
  Employees
  Monetary Policies
  Supervision and Regulation
  3




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The Company
 General.
 Bank Holding Company Regulation.
 
    
    acquire direct or indirect ownership or control of any voting shares of any bank that
results in total ownership or control, directly or indirectly, of more than 5% of the
voting shares of such bank;
    
    merge or consolidate with another bank holding company; or
    
    acquire substantially all of the assets of any additional banks.
   Financial Services Modernization
 
    
    allows bank holding companies that qualify as financial holding companies to engage in
a substantially broader range of non-banking activities than was permissible under prior
law;
    
    allows insurers and other financial services companies to acquire banks;
    
    allows national banks, and some state banks, either directly or through operating
subsidiaries, to engage in certain non-banking financial activities;
    
    removes various restrictions that applied to bank holding company ownership of
securities firms and mutual fund advisory companies; and
    
    establishes the overall regulatory structure applicable to bank holding companies that
also engage in insurance and securities operations.
  4




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Transactions with Affiliates.
 Tie-In Arrangements.
 Source of Strength.
 Subsidiary Dividends.
  5




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State Law Restrictions.
 The Bank
 General
 Community Reinvestment Act.
 Insider Credit Transactions
 Federal Deposit Insurance Corporation Improvement Act
 Interstate Banking and Branching.
 6




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Deposit Insurance.
 Capital Adequacy
     7




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Other Laws and Regulations
 International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001.
  Sarbanes-Oxley Act of 2002
  Privacy.
 Future Legislation.
 8




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Item 1A. Risk Factors
  An economic downturn, especially one affecting Richmond, Columbia and McDuffie counties, could
adversely affect our business.
  If real estate values in our market decline or become stagnant, our business could be adversely
affected.
  Our loan portfolio includes a substantial amount of commercial real estate and construction and
development loans, which may have more risks than residential or consumer loans
   9




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Many of our borrowers have more than one loan or credit relationship with us.
  Our decisions regarding credit risk and reserves for loan losses may materially and adversely
affect our business.
  
    
    the duration of the credit;
    
    credit risks of a particular customer;
    
    changes in economic and industry conditions; and
    
    in the case of a collateralized loan, risks resulting from uncertainties about the
future value of the collateral.
  We face strong competition for customers, which could prevent us from obtaining customers and may
cause us to pay higher interest rates to attract deposits.
  10




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Changes in interest rates may reduce our profitability.
  Our recent operating results may not be indicative of our future operating results.
  We could be adversely affected by the loss of one or more key personnel or by an inability to
attract and retain employees.
   The success of our growth strategy depends on our ability to identify and recruit individuals with
experience and relationships in the markets in which we intend to expand.
  11




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We will face risks with respect to future expansion and acquisitions or mergers.
  Our growth may require us to raise additional capital that may not be available when it is needed
or may not be available on terms acceptable to us.
  We are subject to extensive regulation that could limit or restrict our activities.
   Efforts to comply with the Sarbanes-Oxley Act will involve significant expenditures, and
non-compliance with the Sarbanes-Oxley Act may adversely affect us.
  12




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Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
  Branch
    
    Date OpenedHill Street Office, Thomson, Georgia
    
    January 1989Daniel Village Office, Augusta, Georgia
    
    March 1999West Town Office, Martinez, Georgia
    
    October 1999Medical Center Office, Augusta, Georgia
    
    January 2001Furys Ferry Road Office, Martinez, Georgia
    
    April 2002Main Office, Augusta, Georgia
    
    September 2005
   
 Item 3 . Legal Proceedings
  13




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Item 4 . Submission of Matters to a Vote of Security Holders
  
 PART II
 
 Item 5 . Market for Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities .
 Market Information
  High
    
    LowFiscal year ended December 31, 2005First Quarter
    
    $
    17.60
    
    
    $
    15.60Second Quarter
    
    $
    19.50
    
    
    $
    14.75Third Quarter
    
    $
    16.35
    
    
    $
    15.00Fourth Quarter
    
    $
    15.05
    
    
    $
    13.10Fiscal year ended December 31, 2004First Quarter
    
    $
    17.90
    
    
    $
    16.00Second Quarter
    
    $
    17.00
    
    
    $
    12.80Third Quarter
    
    $
    15.20
    
    
    $
    12.20Fourth Quarter
    
    $
    17.44
    
    
    $
    14.00
 Holders of Common Stock
  Dividends
  14




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Recent Sales of Unregistered Securities; Issuer Stock Purchases
  
 Item 6. Selected Financial Data
  At and for the Years Ended December 31,($ in thousands, except per share data)2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Selected Balance Sheet Data:Assets
    
    $
    349,481
    
    
    $
    332,393
    
    
    $
    266,025
    
    
    $
    257,362
    
    
    $
    205,865Investment securities
    
    
    39,362
    
    
    
    43,375
    
    
    
    35,594
    
    
    
    28,916
    
    
    
    21,115Loans, held for investment
    
    
    248,311
    
    
    
    216,728
    
    
    
    174,567
    
    
    
    145,370
    
    
    
    115,226Loans, held for sale
    
    
    40,064
    
    
    
    56,729
    
    
    
    34,219
    
    
    
    67,927
    
    
    
    58,736Allowance for loan losses
    
    
    3,756
    
    
    
    3,416
    
    
    
    3,164
    
    
    
    2,436
    
    
    
    2,187Deposits
    
    
    304,440
    
    
    
    257,780
    
    
    
    221,656
    
    
    
    201,619
    
    
    
    149,623Short-term borrowings
    
    
    13,342
    
    
    
    46,987
    
    
    
    19,993
    
    
    
    35,745
    
    
    
    38,374Accrued interest
    
    
    1,539
    
    
    
    785
    
    
    
    531
    
    
    
    1,110
    
    
    
    1,993Long-term debt
    
    
    800
    
    
    
    900
    
    
    
    1,000
    
    
    
    1,000
    
    
    
    1,000Other liabilities
    
    
    751
    
    
    
    573
    
    
    
    981
    
    
    
    993
    
    
    
    1,675Shareholders equity
    
    
    28,609
    
    
    
    25,368
    
    
    
    21,864
    
    
    
    16,895
    
    
    
    13,200Selected Results of Operations Data:Interest income
    
    
    20,876
    
    
    
    16,088
    
    
    
    15,159
    
    
    
    13,368
    
    
    
    11,588Interest expense
    
    
    8,420
    
    
    
    4,468
    
    
    
    4,911
    
    
    
    5,172
    
    
    
    6,265Net interest income
    
    
    12,456
    
    
    
    11,620
    
    
    
    10,248
    
    
    
    8,196
    
    
    
    5,323Provision for loan losses
    
    
    1,022
    
    
    
    808
    
    
    
    880
    
    
    
    451
    
    
    
    1,106
 15




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At and for the Years Ended December 31,($ in thousands, except per share data)2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Net interest income after provision forprovision for loan losses
    
    
    11,434
    
    
    
    10,812
    
    
    
    9,368
    
    
    
    7,745
    
    
    
    4,217Noninterest income
    
    
    10,331
    
    
    
    10,571
    
    
    
    15,540
    
    
    
    10,397
    
    
    
    9,120Noninterest expense
    
    
    16,368
    
    
    
    15,714
    
    
    
    16,503
    
    
    
    12,879
    
    
    
    10,794Income before taxes
    
    
    5,397
    
    
    
    5,669
    
    
    
    8,405
    
    
    
    5,263
    
    
    
    2,543Income tax expense
    
    
    1,942
    
    
    
    2,167
    
    
    
    3,373
    
    
    
    1,932
    
    
    
    868Net income
    
    $
    3,455
    
    
    $
    3,502
    
    
    $
    5,032
    
    
    $
    3,331
    
    
    $
    1,675Per Share DataNet income  basic
    
    $
    1.04
    
    
    $
    1.06
    
    
    $
    1.53
    
    
    $
    1.02
    
    
    $
    0.52Net income  diluted
    
    $
    0.98
    
    
    $
    0.99
    
    
    $
    1.41
    
    
    $
    0.95
    
    
    $
    0.49Book value
    
    $
    8.53
    
    
    $
    7.65
    
    
    $
    6.63
    
    
    $
    5.17
    
    
    $
    4.68Weighted average number of shares
outstanding:Basic
    
    
    3,336,834
    
    
    
    3,305,534
    
    
    
    3,281,130
    
    
    
    3,253,662
    
    
    
    3,235,028Diluted
    
    
    3,524,294
    
    
    
    3,521,876
    
    
    
    3,560,495
    
    
    
    3,518,055
    
    
    
    3,446,327
 At and for the Years Ended December 31,2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Performance Ratios:Return on average assets
    
    
    1.00
    %
    
    
    1.19
    %
    
    
    1.92
    %
    
    
    1.44
    %
    
    
    1.06
    %Return on average equity
    
    
    12.80
    %
    
    
    14.86
    %
    
    
    25.97
    %
    
    
    22.14
    %
    
    
    13.83
    %Net interest margin (1)
    
    
    3.78
    %
    
    
    4.14
    %
    
    
    3.96
    %
    
    
    4.12
    %
    
    
    3.58
    %Efficiency ratio (2)
    
    
    71.45
    %
    
    
    70.81
    %
    
    
    63.98
    %
    
    
    68.72
    %
    
    
    74.90
    %Loan to deposit ratio
    
    
    94.72
    %
    
    
    106.08
    %
    
    
    94.19
    %
    
    
    105.79
    %
    
    
    116.27
    %Asset Quality Ratios:Nonperforming loans to total loans
    
    
    0.59
    %
    
    
    0.61
    %
    
    
    0.51
    %
    
    
    0.28
    %
    
    
    0.17
    %Nonperforming assets to total assets
    
    
    0.61
    %
    
    
    0.63
    %
    
    
    0.42
    %
    
    
    0.35
    %
    
    
    0.33
    %Net charge-offs to average total loans
    
    
    0.24
    %
    
    
    0.23
    %
    
    
    0.07
    %
    
    
    0.12
    %
    
    
    0.09
    %Allowance for loan losses to
nonperforming loans
    
    
    219.91
    %
    
    
    205.29
    %
    
    
    299.05
    %
    
    
    408.04
    %
    
    
    724.17
    %Allowance for loan losses to total loans
    
    
    1.30
    %
    
    
    1.25
    %
    
    
    1.52
    %
    
    
    1.14
    %
    
    
    1.26
    %Capital Ratios:Average equity to average assetsLeverage ratio
    
    
    8.14
    %
    
    
    7.98
    %
    
    
    8.48
    %
    
    
    6.81
    %
    
    
    7.04
    %Tier 1 risk-based capital ratio
    
    
    9.91
    %
    
    
    9.11
    %
    
    
    10.38
    %
    
    
    8.68
    %
    
    
    8.47
    %Total risk-based capital ratio
    
    
    11.16
    %
    
    
    10.34
    %
    
    
    11.89
    %
    
    
    9.93
    %
    
    
    9.72
    %Growth Ratios and Other Data:Percentage change in net income
    
    
    (1.3
    %)
    
    
    (30.4
    %)
    
    
    51.1
    %
    
    
    98.9
    %
    
    
    1,218.9
    %Percentage change in diluted net
income per share
    
    
    (1.0
    %)
    
    
    (29.8
    %)
    
    
    48.4
    %
    
    
    93.9
    %
    
    
    1,125.0
    %Percentage change in assets
    
    
    5.1
    %
    
    
    24.9
    %
    
    
    3.4
    %
    
    
    25.0
    %
    
    
    76.7
    %Percentage change in loans
    
    
    5.5
    %
    
    
    31.0
    %
    
    
    (2.1
    %)
    
    
    22.6
    %
    
    
    91.6
    %Percentage change in deposits
    
    
    18.1
    %
    
    
    16.3
    %
    
    
    9.94
    %
    
    
    34.8
    %
    
    
    75.0
    %Percentage change in equity
    
    
    12.8
    %
    
    
    16.0
    %
    
    
    29.4
    %
    
    
    28.0
    %
    
    
    17.6
    %
 
 (1)
    
    Non-tax equivalent.(2)
    
    Computed by dividing noninterest expense by the sum of net interest income and noninterest income, excluding gains
and losses on the sale of assets. 16




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Item 7. Managements Discussion and Analysis of Financial Condition and Results of
Operation
  Critical Accounting Policies
     Accounting for Contingencies, Accounting
 17




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by Creditors for Impairment of a Loan.
   Consolidated Financial Information
  2005
    
    2004
    
    2003Total Assets
    
    Net Income
    
    Total Assets
    
    Net Income
    
    Total Assets
    
    Net Income(Dollar amounts in thousands)Consolidated
    
    $
    349,481
    
    
    $
    3,455
    
    
    $
    332,393
    
    
    $
    3,502
    
    
    $
    266,025
    
    
    $
    5,032Bank only
    
    $
    349,368
    
    
    $
    3,604
    
    
    $
    332,325
    
    
    $
    3,696
    
    
    $
    265,899
    
    
    $
    5,220
   18




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The Bank
 Results of Operations  Comparison of 2005 and 2004
      19




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Comparison of 2004 and 2003
    20




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Distribution of Assets, Liabilities and Shareholders Equity; Interest Rates and Interest
Differential
  21




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AVERAGE BALANCE SHEETS
(Dollar amounts in thousands)
 Year Ended December 31,2005
    
    
    2004
    
    
    2003Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Income/
    
    
    Yield /
    
    
    Average
    
    
    Income/
    
    
    Yield /
    
    
    Average
    
    
    Income/
    
    
    Yield /Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    RateASSETSINTEREST-EARNING ASSETSLoans, net of unearned income
    
    $
    286,924
    
    
    $
    19,263
    
    
    
    6.71
    %
    
    $
    242,158
    
    
    $
    14,713
    
    
    
    6.07
    %
    
    $
    227,242
    
    
    $
    13,956
    
    
    
    6.14
    %Investment securities
    
    
    40,951
    
    
    
    1,549
    
    
    
    3.78
    %
    
    
    38,416
    
    
    
    1,368
    
    
    
    3.56
    %
    
    
    31,407
    
    
    
    1,199
    
    
    
    3.82
    %Fed funds sold & cash in banks
    
    
    2,008
    
    
    
    64
    
    
    
    3.19
    %
    
    
    373
    
    
    
    7
    
    
    
    1.88
    %
    
    
    393
    
    
    
    4
    
    
    
    1.02
    %Total interest-earning assets
    
    
    329,883
    
    
    
    20,876
    
    
    
    6.33
    %
    
    
    280,947
    
    
    
    16,088
    
    
    
    5.73
    %
    
    
    259,042
    
    
    
    15,159
    
    
    
    5.85
    %NON-INTEREST-EARNING ASSETSCash and due from banks
    
    
    6,235
    
    
    
    
    
    
    
    
    
    
    
    6,647
    
    
    
    
    
    
    
    
    
    
    
    7,071Bank premises and fixed assets
    
    
    9,555
    
    
    
    
    
    
    
    
    
    
    
    7,351
    
    
    
    
    
    
    
    
    
    
    
    7,200Accrued interest receivable
    
    
    1,479
    
    
    
    
    
    
    
    
    
    
    
    1,225
    
    
    
    
    
    
    
    
    
    
    
    1,139Other assets
    
    
    2,598
    
    
    
    
    
    
    
    
    
    
    
    1,528
    
    
    
    
    
    
    
    
    
    
    
    3,154Allowance for loan losses
    
    
    (3,877
    )
    
    
    
    
    
    
    
    
    
    
    (3,439
    )
    
    
    
    
    
    
    
    
    
    
    (2,840
    )Total assets
    
    $
    345,873
    
    
    
    
    
    
    
    
    
    
    $
    294,259
    
    
    
    
    
    
    
    
    
    
    $
    274,766LIABILITIES AND
SHAREHOLDERS EQUITYINTEREST-BEARING
DEPOSITSNOW accounts
    
    $
    32,212
    
    
    $
    494
    
    
    
    1.53
    %
    
    $
    36,681
    
    
    $
    417
    
    
    
    1.14
    %
    
    $
    30,871
    
    
    $
    386
    
    
    
    1.25
    %Savings accounts
    
    
    56,234
    
    
    
    1,542
    
    
    
    2.74
    %
    
    
    62,431
    
    
    
    941
    
    
    
    1.51
    %
    
    
    53,616
    
    
    
    878
    
    
    
    1.64
    %Money market accounts
    
    
    13,001
    
    
    
    348
    
    
    
    2.68
    %
    
    
    9,520
    
    
    
    97
    
    
    
    1.02
    %
    
    
    11,072
    
    
    
    174
    
    
    
    1.57
    %Time accounts
    
    
    145,226
    
    
    
    4,742
    
    
    
    3.27
    %
    
    
    99,153
    
    
    
    2,384
    
    
    
    2.40
    %
    
    
    99,709
    
    
    
    2,941
    
    
    
    2.95
    %Total interest-bearing deposits
    
    
    246,673
    
    
    
    7,126
    
    
    
    2.89
    %
    
    
    207,785
    
    
    
    3,839
    
    
    
    1.85
    %
    
    
    195,268
    
    
    
    4,379
    
    
    
    2.24
    %OTHER INTEREST-BEARING
LIABILITIESBorrowed funds
    
    
    34,052
    
    
    
    1,294
    
    
    
    3.80
    %
    
    
    30,681
    
    
    
    629
    
    
    
    2.05
    %
    
    
    27,434
    
    
    
    532
    
    
    
    1.94
    %Total interest-bearing
liabilities
    
    
    280,725
    
    
    
    8,420
    
    
    
    3.00
    %
    
    
    238,466
    
    
    
    4,468
    
    
    
    1.87
    %
    
    
    222,702
    
    
    
    4,911
    
    
    
    2.21
    %NON-INTEREST-BEARING
LIABILITIES AND
SHAREHOLDERS EQUITYDemand deposits
    
    
    36,273
    
    
    
    
    
    
    
    
    
    
    
    30,837
    
    
    
    
    
    
    
    
    
    
    
    28,619Other liabilities
    
    
    1,887
    
    
    
    
    
    
    
    
    
    
    
    1,438
    
    
    
    
    
    
    
    
    
    
    
    1,794Shareholders equity
    
    
    26,988
    
    
    
    
    
    
    
    
    
    
    
    23,518
    
    
    
    
    
    
    
    
    
    
    
    21,651Total liabilities and
shareholders equity
    
    $
    345,873
    
    
    
    
    
    
    
    
    
    
    $
    294,259
    
    
    
    
    
    
    
    
    
    
    $
    274,766Interest rate
spread
    
    
    
    
    
    
    
    
    
    
    3.33
    %
    
    
    
    
    
    
    
    
    
    
    3.86
    %
    
    
    
    
    
    
    
    
    
    
    3.64
    %Net interest income
    
    
    
    
    
    $
    12,456
    
    
    
    
    
    
    
    
    
    
    $
    11,620
    
    
    
    
    
    
    
    
    
    
    $
    10,248Net interest margin
    
    
    
    
    
    
    
    
    
    
    3.78
    %
    
    
    
    
    
    
    
    
    
    
    4.14
    %
    
    
    
    
    
    
    
    
    
    
    3.96
    %Average interest-earning assets
to average total assets
    
    
    
    
    
    
    
    
    
    
    95.38
    %
    
    
    
    
    
    
    
    
    
    
    95.48
    %
    
    
    
    
    
    
    
    
    
    
    94.28
    %Average loans to average deposits
    
    
    
    
    
    
    
    
    
    
    101.41
    %
    
    
    
    
    
    
    
    
    
    
    101.48
    %
    
    
    
    
    
    
    
    
    
    
    101.50
    %
 22




---



##### Table of Contents



Rate/Volume Analysis of Net Interest Income
  Year Ended December 31, 2005
    
    
    Year Ended December 31, 2004Compared with
    
    
    Compared withYear Ended December 31, 2004
    
    
    Year Ended December 31, 2003(In thousands)Increase (Decrease) Due toVolume
    
    
    Rate
    
    
    Total
    
    
    Volume
    
    
    Rate
    
    
    TotalInterest earned on:Tax-exempt securities
    
    $
    37
    
    
    $
    (21
    )
    
    $
    16
    
    
    $
    48
    
    
    $
    (3
    )
    
    $
    45Taxable securities
    
    
    54
    
    
    
    111
    
    
    
    165
    
    
    
    252
    
    
    
    (128
    )
    
    
    124Federal funds sold and cash in
banks
    
    
    54
    
    
    
    2
    
    
    
    56
    
    
    
    (2
    )
    
    
    5
    
    
    
    3Net loans and loans held for sale
    
    
    2,715
    
    
    
    1,836
    
    
    
    4,551
    
    
    
    916
    
    
    
    (159
    )
    
    
    757Total interest income
    
    $
    2,860
    
    
    $
    1,928
    
    
    $
    4,788
    
    
    $
    1,214
    
    
    $
    (285
    )
    
    $
    929Interest paid on:NOW deposits
    
    
    (49
    )
    
    
    126
    
    
    
    77
    
    
    
    73
    
    
    
    (42
    )
    
    
    31Money market deposits
    
    
    35
    
    
    
    216
    
    
    
    251
    
    
    
    (24
    )
    
    
    (53
    )
    
    
    (77
    )Savings deposits
    
    
    (91
    )
    
    
    692
    
    
    
    601
    
    
    
    145
    
    
    
    (82
    )
    
    
    63Time deposits
    
    
    1,095
    
    
    
    1,263
    
    
    
    2,358
    
    
    
    (16
    )
    
    
    (541
    )
    
    
    (557
    )Borrowed funds
    
    
    51
    
    
    
    564
    
    
    
    615
    
    
    
    63
    
    
    
    34
    
    
    
    97Total interest expense
    
    $
    1,041
    
    
    $
    2,861
    
    
    $
    3,902
    
    
    $
    241
    
    
    $
    (684
    )
    
    $
    (443
    )Increase (decrease) in net
interest income
    
    $
    1,819
    
    
    $
    (933
    )
    
    $
    886
    
    
    $
    973
    
    
    $
    399
    
    
    $
    1,372
 Deposits
   23




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##### Table of Contents



Year Ended
    
    
    Year Ended
    
    
    Year EndedDecember 31, 2005
    
    
    December 31, 2004
    
    
    December 31, 2003Average
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    Average
    
    
    AverageAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    RatePaid
    
    
    
    
    
    
    Paid
    
    
    
    
    
    
    PaidDeposit CategoryNon-interest
bearing demand
deposits
    
    $
    36,273
    
    
    
    
    
    
    $
    30,837
    
    
    
    
    
    
    $
    28,619
    
    
    
    NOW and money
market deposits
    
    
    45,213
    
    
    
    1.86
    %
    
    
    46,201
    
    
    
    1.11
    %
    
    
    41,943
    
    
    
    1.33
    %Savings deposits
    
    
    56,234
    
    
    
    2.74
    %
    
    
    62,431
    
    
    
    1.51
    %
    
    
    53,616
    
    
    
    1.64
    %Time deposits
    
    
    145,226
    
    
    
    3.27
    %
    
    
    99,153
    
    
    
    2.40
    %
    
    
    99,709
    
    
    
    2.95
    %
  Three months or less
    
    $
    13,327Over three months through six months
    
    
    4,576Over six months through twelve months
    
    
    33,746Over twelve months
    
    
    43,114Total
    
    $
    94,763
 Short-Term Borrowings
     24




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##### Table of Contents



Loan Portfolio
        25




---



##### Table of Contents



December 31,2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Type of Loan
    
    
    
    
    
    
    
    
    
    (In thousands)Commercial, financial and
agricultural
    
    $
    29,945
    
    
    $
    30,820
    
    
    $
    24,552
    
    
    $
    24,105
    
    
    $
    26,863Real estate  construction
    
    
    55,737
    
    
    
    46,581
    
    
    
    37,201
    
    
    
    26,117
    
    
    
    20,312Real estate  mortgage
    
    
    152,497
    
    
    
    127,691
    
    
    
    99,179
    
    
    
    79,374
    
    
    
    53,730Installment and consumer
    
    
    10,189
    
    
    
    11,705
    
    
    
    15,500
    
    
    
    15,832
    
    
    
    14,435Subtotal
    
    $
    248,368
    
    
    $
    216,797
    
    
    $
    176,432
    
    
    $
    145,428
    
    
    $
    115,340Less:Unearned income and deferred loan
fees
    
    
    (57
    )
    
    
    (69
    )
    
    
    (65
    )
    
    
    (58
    )
    
    
    (1114
    )Allowance for possible loan
losses
    
    
    (3,756
    )
    
    
    (3,416
    )
    
    
    (3,164
    )
    
    
    (2,436
    )
    
    
    (2,187
    )Total (net of allowance)
    
    $
    244,555
    
    
    $
    213,312
    
    
    $
    173,203
    
    
    $
    142,934
    
    
    $
    113,039
   Due in 1Year or
    
    
    Due in 1 to
    
    
    Due AfterLess
    
    
    5 Years
    
    
    5 Years
    
    
    TotalType of Loan
    
    (In thousands)Commercial, financial
and agricultural
    
    $
    14,197
    
    
    $
    13,821
    
    
    $
    1,927
    
    
    $
    29,945Real estate-construction
    
    
    52,732
    
    
    
    3,005
    
    
    
    
    
    
    
    55,737Total
    
    $
    66,929
    
    
    $
    16,826
    
    
    $
    1,927
    
    
    $
    85,682
  Loans due after 1 year with predetermined interest rates
    
    $
    10,975Loans due after 1 year with floating interest rates
    
    $
    7,778
 26




---



##### Table of Contents



December 31,2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001(Dollars in thousands)Loans accounted
for on a
non-accrual basisNumber
    
    
    73
    
    
    
    75
    
    
    
    58
    
    
    
    43
    
    
    
    24Amount
    
    $
    1,708
    
    
    $
    1,664
    
    
    $
    1,057
    
    
    $
    597
    
    
    $
    302Accruing loans
which are
contractually past
due 90 days or more
as to principal and
interest paymentsNumber
    
    
    10
    
    
    
    6
    
    
    
    13
    
    
    
    3
    
    
    
    3Amount
    
    $
    297
    
    
    $
    444
    
    
    $
    496
    
    
    $
    91
    
    
    $
    160
    27




---



##### Table of Contents



Summary of Loan Loss Experience
  Years Ended December 31,2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001(Dollar amounts in thousands)Allowance, beginning of year
    
    $
    3,416
    
    
    $
    3,164
    
    
    $
    2,436
    
    
    $
    2,187
    
    
    $
    1,194Charge-offs:Commercial, financial and
agricultural
    
    
    521
    
    
    
    240
    
    
    
    55
    
    
    
    11
    
    
    
    13Installment and consumer
    
    
    129
    
    
    
    127
    
    
    
    141
    
    
    
    195
    
    
    
    103Real estate
 mortgage
    
    
    73
    
    
    
    333
    
    
    
    10
    
    
    
    7
    
    
    
    8723
    
    
    
    700
    
    
    
    206
    
    
    
    213
    
    
    
    124Recoveries:Commercial, financial and
agricultural
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    4Installment and consumer
    
    
    7
    
    
    
    14
    
    
    
    53
    
    
    
    6
    
    
    
    6Real estate  mortgage
    
    
    
    
    
    
    130
    
    
    
    1
    
    
    
    4
    
    
    
    141
    
    
    
    144
    
    
    
    54
    
    
    
    11
    
    
    
    11Net (charge-offs) recoveries
    
    
    (682
    )
    
    
    (556
    )
    
    
    (152
    )
    
    
    (202
    )
    
    
    (113
    )Provision charged to operations
    
    
    1,022
    
    
    
    808
    
    
    
    880
    
    
    
    451
    
    
    
    1,106Allowance, end of year
    
    $
    3,756
    
    
    $
    3,416
    
    
    $
    3,164
    
    
    $
    2,436
    
    
    $
    2,187Ratio of net (charge-offs)
recoveries during the period
to average loans outstanding
during the period
    
    
    (.24
    %)
    
    
    (.23
    %)
    
    
    (.07
    %)
    
    
    (.11
    %)
    
    
    (.08
    %)
 Loan Loss Allowance
  28




---



##### Table of Contents



2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollar amounts in thousands)Commercial,
financial and
agricultural
    
    $
    543
    
    
    
    12.1
    %
    
    $
    581
    
    
    
    14.2
    %
    
    $
    410
    
    
    
    13.9
    %
    
    $
    330
    
    
    
    16.6
    %
    
    $
    320
    
    
    
    23.3
    %Real estate  construction
    
    
    1,312
    
    
    
    22.4
    %
    
    
    1,165
    
    
    
    21.5
    %
    
    
    1,100
    
    
    
    21.1
    %
    
    
    704
    
    
    
    17.9
    %
    
    
    589
    
    
    
    17.6
    %Real estate  Mortgage
    
    
    1,671
    
    
    
    61.4
    %
    
    
    1,432
    
    
    
    58.9
    %
    
    
    1,385
    
    
    
    56.2
    %
    
    
    920
    
    
    
    54.6
    %
    
    
    782
    
    
    
    46.6
    %Consumer and
installment
    
    
    136
    
    
    
    4.1
    %
    
    
    152
    
    
    
    5.4
    %
    
    
    249
    
    
    
    8.8
    %
    
    
    387
    
    
    
    10.9
    %
    
    
    180
    
    
    
    12.5
    %Unallocated
    
    
    94
    
    
    
    
    
    
    
    86
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    95
    
    
    
    
    
    
    
    316
    
    
    
    Total
    
    $
    3,756
    
    
    
    
    
    
    $
    3,416
    
    
    
    
    
    
    $
    3,164
    
    
    
    
    
    
    $
    2,436
    
    
    
    
    
    
    $
    2,187
      29




---



##### Table of Contents



Investments
   December 31,2005
    
    
    2004
    
    
    2003(In thousands)Obligations of U.S government agencies
    
    $
    16,681
    
    
    $
    15,887
    
    
    $
    17,450Mortgage-backed securities
    
    
    17,041
    
    
    
    20,232
    
    
    
    12,415Obligations of States and political subdivisions
    
    
    3,607
    
    
    
    3,279
    
    
    
    2,494Corporate obligations
    
    
    1,008
    
    
    
    1,557
    
    
    
    2,152Total investment securities
    
    $
    38,337
    
    
    $
    40,955
    
    
    $
    34,511Federal Home Loan Bank stock
    
    
    1,025
    
    
    
    2,420
    
    
    
    1,083Total investment securities and FHLB stock
    
    $
    39,362
    
    
    $
    43,375
    
    
    $
    35,594
 30




---



##### Table of Contents



Maturities of Investment SecuritiesAfter One
    
    
    After FiveWithin
    
    
    Through
    
    
    Through
    
    
    AfterOne Year
    
    
    Five Years
    
    
    Ten Years
    
    
    Ten Years(In thousands)Obligations of U.S. government agencies
    
    $
    
    
    
    $
    12,631
    
    
    $
    4,050
    
    
    $
    Mortgage-backed securities
    
    
    103
    
    
    
    4,423
    
    
    
    3,266
    
    
    
    9,249Obligations of States and political subdivisions
    
    
    
    
    
    
    538
    
    
    
    1,975
    
    
    
    1,094Corporate obligations
    
    
    1,008
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    1,111
    
    
    $
    17,592
    
    
    $
    9,291
    
    
    $
    10,343
 Weighted Average YieldsAfter One
    
    After FiveWithin
    
    Through
    
    Through
    
    AfterOne Year
    
    Five Years
    
    Ten Years
    
    Ten YearsObligations of U.S. government agencies
    
    
    
    
    
    
    3.86
    %
    
    
    4.72
    %
    
    
    Mortgage-backed securities
    
    
    4.98
    %
    
    
    3.54
    %
    
    
    3.74
    %
    
    
    4.38
    %Obligations of States and political subdivisions
    
    
    
    
    
    
    2.68
    %
    
    
    4.10
    %
    
    
    3.90
    %Corporate obligations
    
    
    6.21
    %
    
    
    
    
    
    
    
    
    
    
    Total weighted average yield
    
    
    6.10
    %
    
    
    3.75
    %
    
    
    4.25
    %
    
    
    4.33
    %
  Return on Equity and Assets
  December 31,2005
    
    2004
    
    2003Return on Average Assets
    
    
    1.00
    %
    
    
    1.19
    %
    
    
    1.92
    %Return on Average Equity
    
    
    12.80
    %
    
    
    14.86
    %
    
    
    25.97
    %Dividend Payout
    
    
    
    
    
    
    
    
    
    
    Equity to Assets
    
    
    8.19
    %
    
    
    7.63
    %
    
    
    8.22
    %
 Liquidity and Interest Rate Sensitivity
  31




---



##### Table of Contents



5 years0- 3 mos.
    
    
    3  12 mos.
    
    
    1  5 years
    
    
    or more
    
    
    TotalTaxable securities
    
    $
    
    
    
    $
    
    
    
    $
    538
    
    
    $
    3,069
    
    
    $
    3,607Tax-exempt securities
    
    
    
    
    
    
    2,196
    
    
    
    20,608
    
    
    
    11,926
    
    
    
    34,730Federal funds sold and cash in banks
    
    
    3,228
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,228Loans
    
    
    170,330
    
    
    
    19,169
    
    
    
    96,847
    
    
    
    2,029
    
    
    
    288,375Total rate sensitive assets
    
    
    173,558
    
    
    
    21,365
    
    
    
    117,993
    
    
    
    17,024
    
    
    
    329,940NOW and money market deposits
    
    
    52,759
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,759Savings deposits
    
    
    58,473
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    58,473Time deposits
    
    
    23,762
    
    
    
    64,419
    
    
    
    68,036
    
    
    
    5
    
    
    
    156,222Total rate sensitive deposits
    
    
    134,994
    
    
    
    64,419
    
    
    
    68,036
    
    
    
    5
    
    
    
    267,454Borrowed funds
    
    
    13,342
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,342Total rate sensitive liabilities
    
    
    148,336
    
    
    
    64,419
    
    
    
    68,036
    
    
    
    5
    
    
    
    280,796Excess of rate sensitive assets less rate
sensitive liabilities
    
    $
    25,222
    
    
    $
    (43,054
    )
    
    $
    49,957
    
    
    $
    17,019
    
    
    $
    49,144Cumulative ratio of rate sensitive assets
to liabilities
    
    
    117
    %
    
    
    92
    %
    
    
    111
    %
    
    
    118
    %Cumulative gap
    
    $
    25,222
    
    
    $
    (17,832
    )
    
    $
    32,125
    
    
    $
    49,144
 Capital Resources
   32




---



##### Table of Contents



MinimumBank
    
    December 31, 2005
    
    Regulatory RequirementTier 1 Capital ratio
    
    
    10.12
    %
    
    
    4.0
    %Total risk-based capital ratio
    
    
    11.37
    %
    
    
    8.0
    %Leverage ratio
    
    
    8.32
    %
    
    
    4.0
    %Company  ConsolidatedTier 1 Capital ratio
    
    
    9.91
    %
    
    
    4.0
    %Total risk-based capital ratio
    
    
    11.16
    %
    
    
    8.0
    %Leverage ratio
    
    
    8.14
    %
    
    
    4.0
    %
   Market Risk
    Off-Balance Sheet Arrangements
  33




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##### Table of Contents



At
    
    
    AtDecember 31, 2005
    
    
    December 31, 2004(In thousands)Commitments to extend credit
    
    $
    66,262
    
    
    $
    47,663Standby letters of credit
    
    
    1,947
    
    
    
    837$
    68,209
    
    
    $
    48,500
 Contractual Obligations
  Payments Due by Period (in thousands)
 Less than
    
    
    
    
    
    
    
    
    
    
    More thanTotal
    
    
    1 year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsLong-Term Debt
    
    $
    1,043
    
    
    $
    154
    
    
    $
    421
    
    
    $
    361
    
    
    $
    107Capital Lease Obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Operating Lease Obligations
    
    
    1,015
    
    
    
    287
    
    
    
    653
    
    
    
    75
    
    
    
    Time Deposits
    
    
    161,974
    
    
    
    91,019
    
    
    
    55,441
    
    
    
    15,514
    
    
    
    $
    164,032
    
    
    $
    91,460
    
    
    $
    56,515
    
    
    $
    15,950
    
    
    $
    107
 
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk
  
 Item 8 . Financial Statements and Supplementary Data
       34




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##### Table of Contents



Item 9 . Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure .
  
 Item 9A . Controls and Procedures .
  
 Item 9B . Other Information .
  
 PART III
  
 Item 10 . Directors and Executive Officers of the Registrant .
  
 Item 11 . Executive Compensation .
  
 Item 12 . Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters .
  35




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##### Table of Contents



Item 13 . Certain Relationships and Related Transactions .
  
 Item 14 . Principal Accountant Fees and Services
  
 PART IV
 
 Item 15 . Exhibits and Financial Statement Schedules .
 (a)1.
        (a)2.
  (a)3 & (b). :
 ExhibitNumber
    
    
    
    Description of Exhibit3.1
    
    -
    
    Articles of Incorporation of the Company
(incorporated herein by reference to the exhibit of
the same number in the Companys Registration
Statement on Form SB-2 under the Securities Act of
1933, as amended, Registration No. 333-69763,
previously filed with the Commission).
 36




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##### Table of Contents



ExhibitNumber
    
    
    
    Description of Exhibit3.1.1
    
    -
    
    Articles of Amendment to the Articles of
Incorporation of the Company (incorporated herein by
reference to the exhibit of the same number in the
Companys Annual Report on Form 10-KSB for the year
ended December 31, 2000, previously filed with the
Commission).3.2
    
    -
    
    By-Laws of the Company (incorporated herein by
reference to the exhibit of the same number in the
Companys Registration Statement on Form SB-2 under
the Securities Act of 1933, as amended (Registration
No. 333-69763)).10.1
    
    -
    
    Employment Agreement dated October 6, 1997 between
the Company and Patrick G. Blanchard (incorporated
herein by reference to the exhibit of the same
number in the Companys Quarterly Report on Form
10-QSB for the quarter ended September 30, 1997,
previously filed with the Commission).10.1.1
    
    -
    
    Amendment No. 1 to Employment Agreement dated
October 6, 1997 between First Bank of Georgia, the
Company and Patrick G. Blanchard, dated September
30, 1998 (incorporated herein by reference to the
exhibit of the same number in the Companys
Registration Statement on Form SB-2, as amended,
Registration No. 333-69763, previously filed with
the Commission).10.1.2
    
    -
    
    Amendment No. 2 to Employment Agreement dated
October 6, 1997 between First Bank of Georgia, the
Company and Patrick G. Blanchard, dated December 23,
1998 (incorporated herein by reference to the
exhibit of the same number in the Companys
Registration Statement on Form SB-2, as amended,
Registration No. 333-69763, previously filed with
the Commission).10.2
    
    -
    
    1997 Stock Option Plan (incorporated herein by
reference to the exhibit of the same number in the
Companys Annual Report on Form 10-KSB for the year
ended December 31, 2002, previously filed with the
Commission).10.3
    
    -
    
    Directors Stock Purchase Plan (incorporated herein
by reference to the exhibit of the same number in
the Companys Annual Report on Form 10-KSB for the
year ended December 31, 2002, previously filed with
the Commission).10.4
    
    -
    
    2004 Incentive Plan (incorporated herein by
reference to Appendix A of the Companys Proxy
Statement for its 2004 Annual Meeting of
Shareholders, filed with the Commission on May 5,
2004).10.5
    
    -
    
    Form of Incentive Stock Option Agreement under the
Companys 2004 Incentive Plan (incorporated herein
by reference to the exhibit
 37




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##### Table of Contents



ExhibitNumber
    
    
    
    Description of Exhibitof the same number in
the Companys Annual Report on Form 10-KSB for the
year ended December 31, 2004, previously filed with
the Commission).14.1
    
    -
    
    Code of Ethics (incorporated herein by reference
from Exhibit 99.2 contained in the Companys Annual
Report on Form 10-KSB for the year ended December
31, 2003, previously filed with the Commission).21.1
    
    -
    
    Subsidiaries of the Registrant.23.1
    
    -
    
    Consent of Cherry, Bekaert & Holland, L.L.P.31.1
    
    -
    
    Certification of President and Chief Executive
Officer Pursuant to Section 302 of Sarbanes-Oxley
Act of 2002.31.2
    
    -
    
    Certification of Acting Principal Financial Officer
Pursuant to Section 302 of Sarbanes-Oxley Act of
2002.32.1
    
    -
    
    Certifications Pursuant to Section 906 of
Sarbanes-Oxley Act of 2002.99.1
    
    -
    
    Financial Statements
 38




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##### Table of Contents



SIGNATURES
  GEORGIA-CAROLINA BANCSHARES, INC.Date: March 28, 2006
    
    By:
    
    /s/ Patrick G. Blanchard

Patrick G. BlanchardPresident and Chief Executive Officer(principal executive officer)Date: March 28, 2006
    
    By:
    
    /s/ Remer Y. Brinson, IIIRemer Y. Brinson, IIIActing Principal Financial Officer(principal financial and accounting officer)
 39




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##### Table of Contents



DIRECTORS
    
    DATE
    
    DIRECTORS
    
    DATE/s/ Patrick G. Blanchard
    
    March 28, 2006
    
    /s/ Hugh L. Hamilton, Jr.
    
    March 28, 2006Patrick G. Blanchard
    
    
    
    Hugh L. Hamilton, Jr./s/ Remer Y. Brinson, III

Remer Y. Brinson, III
    
    March 28, 2006
    
    /s/ William G. Hatcher, Sr.

William G. Hatcher
    
    March 28, 2006/s/ Larry DeMeyers

Larry DeMeyers
    
    March 28, 2006
    
    /s/ George H. Inman

George H. Inman
    
    March 28, 2006/s/ Philip G. Farr

Philip G. Farr
    
    March 28, 2006
    
    /s/ David W. Joesbury, Sr.

David W. Joesbury
    
    March 28, 2006/s/ Samuel A. Fowler, Jr.

Samuel A. Fowler, Jr.
    
    March 28, 2006
    
    /s/ James L. Lemley, M.D.

James L. Lemley, M.D.
    
    March 28, 2006/s/ Arthur J. Gay, Jr.

Arthur J. Gay, Jr.
    
    March 28, 2006
    
    /s/ Julian W. Osbon

Julian W. Osbon
    
    March 28, 2006/s/ Joseph D. Greene

Joseph D. Greene
    
    March 28, 2006
    
    /s/ Bennye M. Young

Bennye M. Young
    
    March 28, 2006/s/ J. Randall Hall

J. Randall Hall
    
    March 28, 2006
    
    /s/ A. Montague Miller

A. Montague Miller
    
    March 28, 2006/s/ John W. Lee

John W. Lee
    
    March 28, 2006/s/ Robert N. Wilson, Jr.

Robert N. Wilson, Jr.
    
    March 28, 2006
 40




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##### Table of Contents



EXHIBITNUMBER
    
    DESCRIPTION OF EXHIBIT21.1
    
    Subsidiaries of the Registrant23.1
    
    Consent of Cherry, Bekaert & Holland, L.L.P.31.1
    
    Certification of President and
Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 200231.2
    
    Certification of Acting Principal
Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 200232.1
    
    Certifications Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.99.1
    
    Financial Statements