8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)    January 20, 2005    

    Greenville First Bancshares, Inc.    
(Exact Name of Registrant as Specified in Its Charter)

    South Carolina    
(State or Other Jurisdiction of Incorporation)

000-27719	58-2459561
(Commission File Number)	(IRS Employer Identification No.)

  112 Haywood Road, Greenville, S.C.  
(Address of Principal Executive Offices)    29607                              
(Zip Code)                           

    (864) 679-9000    
(Registrant's Telephone Number, Including Area Code)

                                  
(Former Name or Former Address, if Changed Since Last Report)

        Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

        [  ]      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

        [  ]     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

        [  ]      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

        [  ]      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.   Results of Operations and Financial Condition

On January 20, 2005, Greenville First Bancshares, Inc., holding company for Greenville First Bank, N.A., issued a press release announcing its financial results for the year ended December 31, 2004. A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 9.01.   Financial Statements and Exhibits

      (c)       Exhibits

      Exhibit No.       Exhibit

       99.1                  Earnings Press Release for period ended December 31, 2004.

2

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

GREENVILLE FIRST BANCSHARES, INC.

By:     /s/ James M. Austin, III                                 
Name:    James M. Austin, III
Title:      Chief Financial Officer

Dated:  January 20, 2005

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EXHIBIT INDEX

Exhibit Number             Description

99.1        Earnings Press Release for the period ended December 31, 2004.

4

EX-99

Exhibit 99.1

FINANCIAL CONTACT: JIM AUSTIN 864-679-9070
MEDIA CONTACT: EDDIE TERRELL 864-679-9016
WEB SITE: www.greenvillefirst.com

Greenville First Announces Record Growth For 2004

Assets grow to over $315 million and net income to over $2 million

Greenville, SC, January 20, 2005 –  Greenville First Bancshares, Inc. (NASDAQ: GVBK), holding company for Greenville First Bank NA, today announced that net income for the fourth quarter of 2004 was $704 thousand, or $0.24 per diluted share compared to $342 thousand, or $0.18 per diluted share for the same period in 2003. The company also reported net income for the year ended December 31, 2004 of $2.0 million, or $0.90 per diluted share, a 100% increase when compared to a net income of $1.0 million, or $0.53 per diluted share for the previous year, 2003.

As a result of the $2.0 million in net income in 2004 and the $15.0 million in net proceeds from the secondary stock offering that was completed in October of 2004, the Company’s book value per share increased 63.3%, from $6.49 on December 31, 2003 to $10.60 on December 31, 2004.

Return on average assets for the year ended December 31, 2004 was 0.73% compared to 0.52% for the same period in 2003. Return on average shareholders’ equity in 2004 was 12.37% compared to 9.28% for the same period in 2003. The company’s efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 51.58% during 2004 compared to 59.04% for the year 2003.

“2004 was a year of outstanding growth and exceptional results for our employees and shareholders,” said Art Seaver, President and CEO. “Growing our assets to over $315 million and doubling our earnings to $2 million is evidence that our Client First level of service has been embraced by the Greenville market, and provides us with significant momentum as we expand with two new offices in 2005.”

Total assets grew to $315.8 million as of December 31, 2004 compared to $230.8 million on December 31, 2003, or an increase of 36.8%. Loans were $276.6 million at December 31, 2004, an increase of $70.5 million or 34.2% when compared with $206.1 million at the end of 2003. Deposits grew over 21.2% to $204.8 million on December 31, 2004 compared to $168.9 million on December 31, 2003.

Greenville First celebrated five years of operations on January 10, 2005. The closing stock price on December 31, 2004 was $19.61 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, 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 months and years ended December 31, 2004 and 2003 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						Years
	Ended December 31,						Ended December 31,
	2004			2003			2004			2003
(In thousands, except per share amounts)
Summary Results of Operations Data:
Interest income	$	4,187		$	2,708		$	13,965		$	9,722
Interest expense		1,624			933			5,317			3,618
Net interest income		2,563			1,775			8,648			6,104
Provision for loan losses		285			300			1,310			1,050
Net interest income after
provision for loan losses		2,278			1,475			7,338			5,054
Noninterest income		214			76			761			422
Noninterest expense		1,357			999			4,853			3,853
Income before taxes		1,135			552			3,246			1,623
Income tax expense		431			210			1,233			617
Net income	$	704		$	342		$	2,013		$	1,006
Per Share Data: (2)
Net income, basic	$	0.27		$	0.20		$	1.02		$	0.58
Net income, diluted	$	0.24		$	0.18		$	0.90		$	0.53
Book value	$	10.60		$	6.49		$	10.60		$	6.49
Weighted average number of
shares outstanding:
Basic		2,648			1,725			1,972			1,725
Diluted		2,916			1,900			2,240			1,881
Performance Ratios:
Return on average assets (3)		0.90	%		0.62	%		0.73	%		0.52	%
Return on average equity (3)		10.09	%		12.06	%		12.37	%		9.28	%
Net interest margin (3)		3.35	%		3.30	%		3.17	%		3.24	%
Efficiency ratio (4)		48.87	%		53.97	%		51.58	%		59.04	%
Growth Ratios and Other Data:
Percentage change in net income		105.85	%					100.10	%
Percentage change in diluted net
income per share		33.33	%					69.81	%

                                                                                                                                               (Continued)

SUMMARY CONSOLIDATED FINANCIAL DATA, CONTINUED

	At December 31,
	2004			2003
Summary Balance Sheet Data:
Assets	$	315,811		$	230,841
Investment securities		29,163			15,759
Loans (1)		276,630			206,077
Allowance for loan losses		3,717			2,705
Deposits		204,864			168,964
Securities sold under agreement to
repurchase and federal
funds purchased		13,100			9,297
Other borrowed funds		60,660			32,500
Junior subordinate debentures		6,186			6,186
Shareholders' equity		28,079			11,187
Asset Quality Ratios:
Nonperforming assets, past due
and restructured loans to
total loans (1)		0.27	%		0.21	%
Nonperforming assets, past due
and restructured loans to
total assets		0.24	%		0.19	%
Net charge-offs year to date to average
total loans (1)		0.12	%		0.10	%
Allowance for loan losses to
nonperforming loans		502.84	%		609.35	%
Allowance for loan losses
to total loans (1)		1.34	%		1.30	%
Capital Ratios:
Average equity to average assets		5.87	%		5.57	%
Leverage ratio		10.79	%		6.09	%
Tier 1 risk-based capital ratio		13.13	%		7.78	%
Total risk-based capital ratio		14.38	%		10.24	%
Growth Ratios and Other Data:
Percentage change in assets		36.81	%
Percentage change in loans (1)		34.24	%
Percentage change in deposits		21.25	%
Percentage change in equity		151.00	%
Loan to deposit ratio (1)		133.22	%

(1) Includes nonperforming loans.

(2) Adjusted for all years presented giving retroactive effect to a three-for-two common stock split in November 2003.

(3) Annualized for the three month periods.

(4) Computed by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income, net of securities gains or losses.