GB&T Bancshares, Hometown Bank announce merger intent

GAINESVILLE - Richard A. Hunt, President and CEO of GB&T Bancshares, Inc., and Keith G.
Beckham, Chief Executive Officer of HomeTown Bank of Villa Rica , announced the signing of a non-binding Letter of Intent to merge HomeTown Bank into GB&T Bancshares network of financial companies.

With approximately $100 million in total assets, HomeTown Bank of Villa Rica operates three full-service banking offices in the counties of Carroll and Paulding.

GB&T Bancshares is the parent company of Gainesville Bank & Trust with $320 million in assets and seven banking offices in Hall County, United Bank & Trust in Polk County with $66 million in assets and offices in Rockmart and Cedartown, Community Trust Bank, headquartered in Hiram, GA with assets of
$156 million and four offices located in Paulding and Cobb Counties and Community Loan Company, which operates eight consumer finance offices in north Georgia.

Upon completion of the merger, GB&T Bancshares will have total assets approaching $700 million and equity of in excess of $52 million.

Each bank will operate as separate subsidiaries and will retain a local Board of
Directors, management, trade name and other primary market strengths.

HomeTown shareholders will receive $11.83 and .7886 shares of GB&T Bancshares stock for each share of HomeTown Bank stock.

GB&T Management expects the merger to be accretive to earnings per share after the first year.

"The inclusion of HomeTown Bank into our organization represents a good geographic fit with our present banking subsidiaries in Paulding, Polk and Cobb counties," commented Richard Hunt. "At the time the merger is completed, GB&T Bancshares will have grown in total assets to almost three-quarters of a
billion dollars."

Beckham adds, "We are pleased to be entering into this agreement with an organization such as GB&T Bancshares. The company shares the same values in terms of hometown banking and quality customer service. Our growth through the years is a direct result of our commitment to personal service, and this move will allow us to continue to serve our customers with the same level of service to which they have grown accustomed."

GB&T Chairman Abit Massey concludes, "The merger with HomeTown Bank will allow our company to remain on track in our strategic plan to build a top quality financial services holding company headquartered in north Georgia."

The proposed merger is subject to the execution of a definitive agreement by both companies, the approval of the transaction by federal and state regulatory authorities, a due diligence examination, shareholder approvals, and other customary conditions of closing.