Athens Bancshares Corporation Reports 2012 Financial Results

Athens Bancshares Corporation Reports 2012 Financial Results

ATHENS, Tenn., Jan. 31, 2013 (GLOBE NEWSWIRE) -- Athens Bancshares Corporation
(Nasdaq:AFCB) (the "Company"), the holding company for Athens Federal
Community Bank (the "Bank"), today announced its results of operations for the
three and twelve months ended December 31, 2012. The Company's net income for
the three months ended December 31, 2012 was $581,000 or $0.26 per diluted
share, compared to net income of $713,000 or $0.28 per diluted share for the
same period in 2011. For the twelve months ended December 31, 2012, net income
was $2.6 million or $1.09 per diluted share, compared to a net income of $1.9
million or $0.75 per diluted share for the twelve months ended December 31,
2011.

Results of Operations – Three Months Ended December 31, 2012 and 2011

Net interest income after provision for loan losses increased $74,000 or
2.99%, to $2.6 million for the three months ended December 31, 2012 compared
to the three months ended December 31, 2011. Interest income decreased $27,000
when comparing the two periods as the average balance of interest-earning
assets increased from $263.6 million for the three months ended December 31,
2011 to $274.1 million for the comparable period in 2012. The average yield on
interest earning assets decreased from 5.57% during the three months ended
December 31, 2011 to 5.32% for the comparable period in 2012. Interest expense
decreased $154,000 when comparing the two periods as the average balance of
interest bearing liabilities increased from $217.5 million for the three
months ended December 31, 2011 to $226.4 million for the comparable period in
2012. The average cost of interest-bearing liabilities decreased from 1.42% to
1.10% when comparing the same two periods. The provision for loan losses
increased $53,000 from $421,000 for the quarter ended December 31, 2011 to
$474,000 for the quarter ended December 31, 2012.

Non-interest income increased $196,000 to $1.5 million for the three months
ended December 31, 2012 compared to $1.3 million for the same period in 2011.
The increase was primarily due to an increase in income related to sale of
loans on the secondary market, an increase in debit card related income, an
increase in income related to consumer loan related fees and increased revenue
from Valley Title Services, LLC partially offset by a reduction in deposit
related fees generated from non-sufficient fund charges.

Non-interest expense increased $319,000 to $3.2 million for the quarter ended
December 31, 2012 compared to $2.8 million for the quarter ended December 31,
2011. The increase was primarily due to data processing fees related to
increased debit card transactions as well as increased salary and employee
benefits expenses including an increase in the number of employees.

Income tax expense for the three months ended December 31, 2012 was $285,000
compared to $202,000 for the same period in 2011.

Results of Operations – Year Ended December 31, 2012 and 2011

Net interest income after provision for loan losses increased $1.4 million, or
15.31%, to $10.8 million for the year ended December 31, 2012 as compared to
the year ended December 31, 2011.Interest income decreased $172,000 when
comparing the two periods as the average balance of interest-earning assets
increased from $262.9 million for the year ended December 31, 2011 to $271.3
million for the year ended December 31, 2012.The average yield on
interest-earning assets decreased from 5.57% during the year ended December
31, 2011 to 5.33% for the year ended December 31, 2012.Interest expense
decreased $700,000 as the average cost of interest bearing liabilities
decreased from 1.53% to 1.18% when comparing the two years, while the average
balance of interest bearing liabilities increased$4.8 million from $218.5
million to $223.3 million.The provision for loan losses decreased $900,000
from $2.0 million for the year ended December 31, 2011 to $1.1 million for the
year ended December 31, 2012. The decrease in provision for loan losses was
primarily due to a decrease in net charge offs period over period.

Non-interest income increased $569,000 to $5.3 million for the year ended
December 31, 2012 compared to the year ended December 31, 2011.The increase
was primarily due to an increase in income related to the sale of mortgage
loans on the secondary market, an increase in debit card related income and an
increase in revenue from Valley Title Services, LLC partially offset by
reductions in nonsufficient fund charges on deposit accounts and customer
investment sales commissions.

Non-interest expense increased $447,000 to $11.9 million for the year ended
December 31, 2012 compared to the year ended December 31, 2011.The increase
was primarily due to data processing fees related to increased debit card
transactions as well as increased salary and employee benefits expenses
including an increase in the number of employees.

Income tax expense for the year ended December 31, 2012 was $1.6 million as
compared to $754,000 for the year ended December 31, 2011.The primary reason
for the change was the increase in taxable income during the 2012 period.

Total assets increased $7.9 million to $291.6 million at December 31, 2012,
compared to $283.7 million at December 31, 2011.The Bank was considered
well-capitalized under applicable federal regulatory capital guidelines at
December 31, 2012.

This release may contain forward-looking statements within the meaning of the
federal securities laws.These statements are not historical facts; rather,
they are statements based on the Company's current expectations regarding its
business strategies and their intended results and its future
performance.Forward-looking statements are preceded by terms such as
"expects", "believes", "anticipates", "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance.Numerous
risks and uncertainties could cause or contribute to the Company's actual
results, performance and achievements to be materially different from those
expressed or implied by the forward-looking statements.Factors that may cause
or contribute to these differences include, without limitation, general
economic conditions, including changes in market interest rates and changes in
monetary and fiscal policies of the federal government; legislative and
regulatory changes; and other factors disclosed periodically in the Company's
filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements,
readers are cautioned not to place undue reliance on them, whether included in
this report or made elsewhere from time to time by the Company or on its
behalf.Except as may be required by applicable law or regulation, the Company
assumes no obligation to update any forward-looking statements

ATHENS BANCSHARES CORPORATION AND SUBSIDIARY
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except per share amounts)

                                    THREE MONTHS ENDED  YEARS ENDED
                                    DECEMBER 31,        DECEMBER 31,
                                    2012      2011      2012       2011
Operating Data:                                                  
Total interest income                $3,646  $3,673  $ 14,474 $14,646
Total interest expense               620       774       2,638      3,338
                                                                
Net interest income                  3,026     2,899     11,836     11,308
Provision for loan losses            474       421       1,080      1,980
Net interest income after provision  2,552     2,478     10,756     9,328
for loan losses
                                                                
Total non-interest income            1,473     1,277     5,327      4,758
Total non-interest expense           3,159     2,840     11,871     11,424
                                                                
Income before income taxes           866       915       4,212      2,662
Income tax expense                   285       202       1,609      754
                                                                
Net income                           $581   $713  $2,603   $1,908
                                                                
Net income per share, basic          $0.27   $0.29    $1.12    $0.75
Average common shares outstanding,   2,182,482 2,489,375           2,528,618
basic                                                    2,332,940
Net income per share, diluted        $0.26   $0.28    $1.09    $0.75
Average common shares outstanding,            2,503,611           2,553,253
diluted                              2,255,498           2,387,007
                                                                
Performance ratios:                                              
Return on average assets             0.79%     1.00%    0.89%      0.67%
(annualized)
Return on average equity             4.79      5.66      5.23       3.80
(annualized)
Interest rate spread                 4.22      4.15      4.15       4.04
Net interest margin                  4.42      4.40      4.36       4.30

                                         AS OF              AS OF
                                         DECEMBER 31, 2012  DECEMBER 31,2011
FINANCIAL CONDITION DATA:                                   
Total assets                              $291,632         $ 283,716
Gross loans                               221,750           208,865
Allowance for loan losses                 4,475             4,166
Deposits                                  234,248           224,112
Securities sold under agreements to       2,110             2,265
repurchase
Total liabilities                         243,628           233,166
Stockholders' equity                      48,004           50,550
                                                           
Non-performing assets:                                      
Non-accrual loans                         $3,870          $3,254
Accruing loans past due 90 days           28                45
Foreclosed real estate                    509                526
Other non-performing assets               37                 11
                                                           
Troubled debt restructurings ^(1)         $5,270       $6,808
                                                           
Asset quality ratios:                                       
Allowance for loan losses as a percent of 2.02%              1.99%
total gross loans
Allowance for loan losses as a percentof 114.80            126.28
non-performing loans
Non-performing loans as a percent         1.76               1.58
oftotal loans
Non-performing loans as a percent of      1.34               1.16
total assets
Non-performing assets and troubled
debtrestructurings as a percentage of    3.17               3.52
total assets
                                                           
Regulatory capital ratios (Bank only):                      
Total capital (to risk-weighted assets)   21.33%             21.96%
Tier 1 capital (to risk-weighted assets)  20.07              20.69
Tier 1 capital (to adjusted total assets) 13.43              14.13

^(1)Troubled debt restructurings include $419,000 and $670,000 in
non-accrual loans at December 31, 2012 and December 31, 2011, respectively,
which are also included in non-accrual loans at the respective dates.

CONTACT: Athens Bancshares Corporation
         Jeffrey L. Cunningham
         President and CEO
         423-745-1111

Michael R. Hutsell