Exhibit 99.1
Green Bankshares Reports Preliminary Year-End Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--January 22, 2009--Green Bankshares, Inc. (NASDAQ:GRNB), the holding company for GreenBank, today reported preliminary financial results for the fourth quarter and year ended December 31, 2008. Consistent with its fourth quarter outlook issued on December 30, 2008, the Company expects to report a net loss available to common shareholders of $15,326,000 or $1.18 per diluted share for the quarter compared with net income available to common shareholders of $2,758,000 or $0.21 per diluted share for the fourth quarter of 2007. For the year ended December 31, 2008, the net loss available to common shareholders was $5,452,000 compared with record net income of $24,374,000 reported in 2007. On a diluted share basis, the Company reported a net loss available to common shareholders of $0.42 per share compared with diluted earnings per share of $2.07 in 2007.
The results for the full-year 2008 and the fourth quarter are subject to Management’s review and analysis of third-party data received in relation to the Company’s valuation of goodwill. If it is determined that a goodwill impairment charge is appropriate, it would be a non-cash charge that would not have an adverse impact on the Company’s liquidity or capital ratios. The Company’s capital ratios are strong, will remain strong, and will be above the regulatory requirements necessary to be deemed a well-capitalized financial institution.
Stan Puckett, Chairman and Chief Executive Officer, stated, "The Company's performance was clearly affected by the economic downturn of 2008 and, more specifically, the continued weaknesses in residential real estate markets and our exposure to these markets. The economic downturn now has been identified as a recession, accompanied by high unemployment and dwindling consumer confidence. During such times, we believe it is prudent to build even stronger capital levels and aggressively address credit quality issues. Our financial results for 2008, although disappointing, reflect these beliefs."
Puckett added, "Bolstered by the sale of $72.3 million of preferred stock to the U.S. Treasury on December 23, 2008, the Company remained 'well-capitalized' – the highest capital regulatory rating a financial institution can achieve. The Bank's Tier 1 leverage ratio was 10.98%, its Tier 1 risk-based capital ratio was 13.33%, and the Bank's total risk-based capital ratio was 14.60% – all exceeding the required minimums of 5%, 6% and 10%, respectively, to be deemed a 'well capitalized' institution."
Year-end 2008 credit quality data included:
- 96.7% of non-performing assets (NPAs) were secured by real estate, of which 96.1% were secured by residential real estate.
- NPAs totaling $76.8 million at December 31, 2008, have been written down an average of 20.7%, based upon principal balances.
- Exposure to residential construction loans to contractors has been reduced 16.9% to $160.8 million at the end of the quarter from $193.5 million at September 30, 2008, and from $229.7 million at December 31, 2007.
- Subdivision loans to developers were $242.3 million at December 31, 2008, down from $274.3 million at September 30, 2008.
- At year-end approximately $21 million of loans on non-accrual were less than 30 days past due compared with $7 million at September 30, 2008.
- Loans 30 days or more past due totaled $28.0 million, or 1.3% of loans outstanding at December 31, 2008, excluding non-accrual loans, compared with $12.8 million or 0.55% of loans outstanding at September 30, 2008.
The following information graphically displays the Bank-only loan portfolio breakdown, by purpose code, at December 31, 2008, and does not include overdraft reclassifications:
(See accompanying chart)
At December 31, 2008, NPAs totaled $76,806,000 or 2.61% of total assets compared with $52,956,000 or 1.76% of total assets at September 30, 2008, and $36,937,000 or 1.25% of total assets at December 31, 2007. Non-performing loans declined $9,306,000 from third quarter 2008 level, while OREO increased $33,156,000 during the same time as foreclosures rose. The increase for the fourth quarter primarily reflected continued weakness in the Company's subdivision and land acquisition segment of the loan portfolio, which comprises approximately 11% of the total portfolio and, to a lesser degree, deterioration in the residential speculative construction portfolio, which comprises approximately 7% of the loan portfolio. Management recognizes the probability that the recession may elevate defaults and losses in the remainder of the loan portfolio; however, the remaining 82% of the loan portfolio currently is performing satisfactorily.
The Company's allowance for loan losses totaled $48,811,000 or 2.20% of total loans at December 31, 2008, up from $34,856,000 or 1.50% of total loans at September 30, 2008, and $34,111,000 or 1.45% of total loans as of December 31, 2007. The allowance for loan losses reflects a current coverage ratio of non-performing loans of over 155% at year-end compared with 86% at September 30, 2008, and 106% at the end of 2007. During the fourth quarter, the Company's provision for loan losses was $32,283,000, up from $8,620,000 for the third quarter of 2008 and $10,806,000 in the fourth quarter last year. The full-year 2008 provision for loan losses totaled $52,810,000 versus $14,483,000 for 2007. Net charge-offs in the fourth quarter, relative to average loans net of unearned income, totaled $18,328,000 versus $9,115,000 for the third quarter of 2008 and $10,398,000 in the fourth quarter of 2007. For the full year, net charge-offs totaled $38,110,000 or 1.63% of average total loans compared with $11,696,000 or 0.57% for 2007.
Net interest income for the fourth quarter of 2008 totaled $21,125,000, net of interest reversals of more than $704,000 compared with net interest income of $25,606,000 in the same period a year ago. Net interest margin contracted to 3.30% in the current quarter from 3.72% for the third quarter of 2008 and 3.91% in the fourth quarter of 2007, reflecting the combination of falling loan interest rates, interest reversals and the impact on net interest income of carrying a higher level of average non-accrual loans. Including interest reversals of over $2,024,000, net interest income for 2008 increased slightly to $95,025,000 from $94,653,000 in the prior year.
Non-interest income totaled $10,186,000 for the fourth quarter, up 24% from $8,185,000 in the fourth quarter of 2007, principally as a result of net securities gains of $2,589,000 during the fourth quarter of 2008. For 2008, non-interest income rose 22% to $33,614,000 from $27,602,000 in 2007. The net gain on the sale of securities, coupled with continued growth in the Company's High Performance Checking product, were the primary drivers of this increase. On a year-to-date basis, the High Performance Checking program added over $23 million to non-interest income, up almost 21% over last year, offsetting lower mortgage banking income and wealth management fees.
Non-interest expense totaled $24,192,000 in the fourth quarter of 2008, including OREO losses of $4,006,000 related to the Company's efforts to aggressively liquidate OREO throughout the quarter. Compared with the fourth quarter of 2007, non-interest expense rose $4,548,000 or 23%, primarily due to OREO losses. Reflecting the earnings trend, the efficiency ratio for the fourth quarter was 77.26% compared with 67.74% for the third quarter of 2008 and 58.04% for the fourth quarter of 2007. For 2008, non-interest expense rose $16,585,000 or 24% to $85,837,000 from $69,252,000 in 2007, primarily reflecting $7,028,000 in OREO losses in 2008 plus the full-year 2008 impact of the normal incremental operating costs associated with an acquisition completed in May 2007. The Company's efficiency ratio for 2008 was 66.73% versus 56.67% for 2007.
At December 31, 2008, the Company's total assets declined slightly to $2,944,671,000 compared with $2,947,741,000 at December 31, 2007, and were down from $3,012,041,000 at September 30, 2008. Net loans of $2,223,390,000 at December 31, 2008, declined less than 1% from $2,356,376,000 at December 31, 2007, and were down slightly from $2,323,076,000 at September 30, 2008. Deposits increased 1% to $2,184,147,000 at December 31, 2008, from $1,986,793,000 at December 31, 2007, and were down slightly from $2,276,198,000 as of September 30, 2008.
Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.945 billion, is the holding company for GreenBank. GreenBank, which traces its origin to 1890, has 63 branches across East and Middle Tennessee, and one branch each in Bristol, Virginia, and Hot Springs, North Carolina. It also provides wealth management services through its GreenWealth Division and residential mortgage lending through its Mortgage Division. In addition, GreenBank conducts separate businesses through three wholly owned subsidiaries: Superior Financial Services, Inc., a consumer finance company; GCB Acceptance Corporation, a consumer finance company specializing in automobile lending; and Fairway Title Co., a title insurance company.
Certain matters discussed in this news release are not historical facts but are "forward-looking statements" within the meaning of and are furnished pursuant to the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risk and uncertainty and actual results could differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Risks and uncertainties related to the Company's business are discussed in the Company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2007, and Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update forward-looking statements.
| |
GREEN BANKSHARES, INC. Unaudited Financial Highlights (In thousands, except per share amounts) |
| |
| | Three Months Ended | | Year Ended |
| | Dec. 31, 2008 | | Sept. 30, 2008 | | Dec. 31, 2007 | | Dec. 31, 2008 | | Dec. 31, 2007 |
| Interest income | | $ | 39,147 | | | $ | 42,566 | | $ | 49,911 | | $ | 170,516 | | | $ | 176,626 |
| Interest expense | | | 18,022 | | | | 18,182 | | | 24,305 | | | 75,491 | | | | 81,973 |
| Net interest income | | | 21,125 | | | | 24,384 | | | 25,606 | | | 95,025 | | | | 94,653 |
| Provision for loan losses | | | 32,283 | | | | 8,620 | | | 10,806 | | | 52,810 | | | | 14,483 |
Net interest income (loss) after provision for loan losses | | | (11,158 | ) | | | 15,764 | | | 14,800 | | | 42,215 | | | | 80,170 |
| Non-interest income | | | 10,186 | | | | 8,010 | | | 8,185 | | | 33,614 | | | | 27,602 |
| Non-interest expense | | | 24,192 | | | | 21,944 | | | 19,644 | | | 85,837 | | | | 69,252 |
Income (loss) before income taxes | | | (25,164 | ) | | | 1,830 | | | 3,341 | | | (10,008 | ) | | | 38,520 |
| Income tax (benefit) provision | | | (9,930 | ) | | | 596 | | | 583 | | | (4,648 | ) | | | 14,146 |
| Income (loss) | | | (15,234 | ) | | | 1,234 | | | 2,758 | | | (5,360 | ) | | | 24,374 |
| Preferred stock dividends | | | 92 | | | | -- | | | -- | | | 92 | | | | -- |
| Net income (loss) available to common shareholders | | $ | (15,326 | ) | | $ | 1,234 | | $ | 2,758 | | $ | (5,452 | ) | | $ | 24,374 |
| Comprehensive income (loss) | | $ | (16,008 | ) | | $ | 1,547 | | $ | 4,829 | | $ | (7,530 | ) | | $ | 26,010 |
| |
| Earnings per share: | | | | | | | | | | | | | | | | | |
| Basic | | $ | (1.18 | ) | | $ | 0.10 | | $ | 0.21 | | $ | (0.42 | ) | | $ | 2.07 |
| Diluted | | $ | (1.18 | ) | | $ | 0.10 | | $ | 0.21 | | $ | (0.42 | ) | | $ | 2.07 |
| | | | | | | | | | |
| Weighted average shares: | | | | | | | | | | | | | | | | | |
| Basic | | | 12,936 | | | | 12,932 | | | 12,927 | | | 12,933 | | | | 11,757 |
| Diluted | | | 12,999 | | | | 12,948 | | | 12,963 | | | 12,991 | | | | 11,799 |
| |
| Dividends declared per share | | $ | 0.13 | | | $ | 0.13 | | $ | 0.29 | | $ | 0.52 | | | $ | 0.68 |
| |
| | Dec. 31, 2008 | | Sept. 30, 2007 | | Dec. 31, 2007 |
| Total assets | | $ | 2,944,671 | | $ | 3,012,041 | | | $ | 2,947,741 |
| Cash and cash equivalents | | | 198,358 | | | 102,919 | | | | 65,717 |
| Investment securities | | | 217,249 | | | 306,857 | | | | 248,898 |
| Loans, net of unearned interest | | | 2,223,390 | | | 2,323,076 | | | | 2,356,376 |
| Allowance for loan losses | | | 48,811 | | | 34,856 | | | | 34,111 |
| Deposits | | | 2,184,147 | | | 2,276,198 | | | | 1,986,793 |
| Shareholders' equity | | | 381,231 | | | 326,482 | | | | 322,477 |
| Tangible shareholders' equity 1 | | | 225,757 | | | 170,365 | | | | 164,650 |
| Book value per share | | | 23.56 | | | 25.12 | | | | 24.94 |
Tangible book value per share 1 | | | 17.22 | | | 13.11 | | | | 12.73 |
1 | | Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. |
| |
| GREEN BANKSHARES, INC. |
| Consolidated Balance Sheets |
| December 31, 2008, September 30, 2008 and December 31, 2007 |
| (Dollars in thousands) |
| |
| | (Unaudited) | | (Unaudited) | | |
| | December 31, | | September 30, | | December 31, |
| | 2008 | | 2008 | | 2007* |
ASSETS | | | | | | |
| | | | | | |
| Cash and due from banks | | $ | 193,095 | | | $ | 46,168 | | | $ | 65,717 | |
| Federal funds sold | | | 5,263 | | | | 56,751 | | | | - | |
| Cash and cash equivalents | | | 198,358 | | | | 102,919 | | | | 65,717 | |
| | | | | | |
| Securities available-for-sale ("AFS") | | | 203,562 | | | | 292,897 | | | | 235,273 | |
Securities held-to-maturity (with a market value of $601, $700 and $1,280 on December 31, 2008, September 30, 2008 and December 31, 2007) | | | 657 | | | | 757 | | | | 1,303 | |
| FHLB and other stock, at cost | | | 13,030 | | | | 13,203 | | | | 12,322 | |
| Loans held for sale | | | 442 | | | | 1,824 | | | | 2,331 | |
| Loans, net of unearned income | | | 2,223,390 | | | | 2,323,076 | | | | 2,356,376 | |
| Allowance for loan losses | | | (48,811 | ) | | | (34,856 | ) | | | (34,111 | ) |
| Other real estate owned and repossessed assets | | | 45,371 | | | | 12,215 | | | | 4,859 | |
| Bank premises and equipment, net | | | 83,359 | | | | 83,569 | | | | 82,697 | |
Cash surrender value of life insurance | | | 29,539 | | | | 29,270 | | | | 28,466 | |
| Goodwill | | | 143,389 | | | | 143,389 | | | | 143,140 | |
Core deposit and other intangibles | | | 12,085 | | | | 12,728 | | | | 14,687 | |
| Other assets | | | 40,300 | | | | 31,050 | | | | 34,681 | |
| Total assets | | $ | 2,944,671 | | | $ | 3,012,041 | | | $ | 2,947,741 | |
| | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| | | | | | |
| Noninterest-bearing deposits | | $ | 176,685 | | | $ | 189,262 | | | $ | 201,289 | |
| Interest-bearing deposits | | | 2,007,462 | | | | 2,086,936 | | | | 1,785,504 | |
| Total deposits | | | 2,184,147 | | | | 2,276,198 | | | | 1,986,793 | |
| | | | | | |
| Federal funds purchased | | | - | | | | 413 | | | | 87,787 | |
| Repurchase agreements | | | 35,302 | | | | 64,929 | | | | 106,738 | |
| FHLB advances and notes payable | | | 229,349 | | | | 229,906 | | | | 318,690 | |
| Subordinated debentures | | | 88,662 | | | | 88,662 | | | | 88,662 | |
| Accrued interest payable and other liabilities | | | 25,980 | | | | 25,451 | | | | 36,594 | |
| Total liabilities | | | 2,563,440 | | | | 2,685,559 | | | | 2,625,264 | |
| | | | | | |
SHAREHOLDERS' EQUITY | | | | | | |
| | | | | | |
Preferred stock: no par value, 1,000,000 shares authorized; 72,278, 0, 0 shares outstanding | | | 72,278 | | | | - | | | | - | |
Common stock: $2 par value, 20,000,000 shares authorized; 13,112,687, 13,001,226 and 12,931,015 shares outstanding | | | 26,225 | | | | 25,998 | | | | 25,862 | |
| Additional paid in capital | | | 187,742 | | | | 185,631 | | | | 185,170 | |
| Retained earnings | | | 95,649 | | | | 114,742 | | | | 109,938 | |
| Accumulated other comprehensive income (loss) | | | (663 | ) | | | 111 | | | | 1,507 | |
| Total shareholders' equity | | | 381,231 | | | | 326,482 | | | | 322,477 | |
| | | | | | |
| Total liabilities & shareholders' equity | | $ | 2,944,671 | | | $ | 3,012,041 | | | $ | 2,947,741 | |
| |
| * Derived from Audited Consolidated Financial Statements. |
| |
| GREEN BANKSHARES, INC. |
| Consolidated Statements of Income and Comprehensive Income |
| Three Months Ended December 31, 2008, September 31, 2008 and December 31, 2007 and Twelve Months Ended December 31, 2008 and 2007 |
| (Unaudited) |
| |
| (Dollars in thousands except share and per share data) |
| |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | September 30, | | December 31, | | December 31, | | December 31, |
| | 2008 | | 2008 | | 2007 | | 2008 | | 2007 |
| | | | | | | | | | |
Interest income: | | | | | | | | | | |
| Interest and fees on loans | | $ | 34,974 | | | $ | 38,497 | | $ | 46,447 | | $ | 155,627 | | | $ | 166,673 | |
| Taxable securities | | | 3,636 | | | | 3,487 | | | 2,923 | | | 12,770 | | | | 8,415 | |
| Nontaxable securities | | | 320 | | | | 320 | | | 339 | | | 1,297 | | | | 867 | |
| FHLB and other stock | | | 154 | | | | 176 | | | 197 | | | 647 | | | | 610 | |
| Federal funds sold and other | | | 63 | | | | 86 | | | 5 | | | 175 | | | | 61 | |
| Total interest income | | | 39,147 | | | | 42,566 | | | 49,911 | | | 170,516 | | | | 176,626 | |
| | | | | | | | | | |
Interest expense: | | | | | | | | | | |
| Deposits | | | 14,433 | | | | 14,345 | | | 17,395 | | | 58,090 | | | | 61,372 | |
| Federal funds purchased and repurchase agreements | | | 57 | | | | 262 | | | 1,352 | | | 2,111 | | | | 4,183 | |
| FHLB advances and notes payable | | | 2,467 | | | | 2,525 | | | 3,903 | | | 10,735 | | | | 11,905 | |
| Subordinated debentures | | | 1,065 | | | | 1,050 | | | 1,655 | | | 4,555 | | | | 4,513 | |
| Total interest expense | | | 18,022 | | | | 18,182 | | | 24,305 | | | 75,491 | | | | 81,973 | |
| | | | | | | | | | |
| Net interest income | | | 21,125 | | | | 24,384 | | | 25,606 | | | 95,025 | | | | 94,653 | |
| | | | | | | | | | |
| Provision for loan losses | | | 32,283 | | | | 8,620 | | | 10,806 | | | 52,810 | | | | 14,483 | |
| | | | | | | | | | |
| Net interest income (loss) after provision for loan losses | | | (11,158 | ) | | | 15,764 | | | 14,800 | | | 42,215 | | | | 80,170 | |
| | | | | | | | | | |
Noninterest income: | | | | | | | | | | |
| Service charges on deposit accounts | | | 5,651 | | | | 6,070 | | | 5,541 | | | 23,176 | | | | 19,169 | |
| Other charges and fees | | | 681 | | | | 502 | | | 669 | | | 2,192 | | | | 2,012 | |
| Trust and investment services income | | | 480 | | | | 564 | | | 494 | | | 1,878 | | | | 2,019 | |
| Mortgage banking income | | | 115 | | | | 139 | | | 394 | | | 804 | | | | 1,524 | |
| Net gain (loss) on the sale of securities | | | 2,589 | | | | 72 | | | 1 | | | 2,661 | | | | (41 | ) |
| Other income | | | 670 | | | | 663 | | | 1,086 | | | 2,903 | | | | 2,919 | |
| Total noninterest income | | | 10,186 | | | | 8,010 | | | 8,185 | | | 33,614 | | | | 27,602 | |
Noninterest expense: | | | | | | | | | | |
| Employee compensation | | | 7,995 | | | | 8,961 | | | 8,633 | | | 33,615 | | | | 31,132 | |
| Employee benefits | | | 1,145 | | | | 1,197 | | | 1,175 | | | 4,788 | | | | 4,359 | |
| Occupancy expense | | | 1,790 | | | | 1,746 | | | 1,662 | | | 6,900 | | | | 5,711 | |
| Equipment expense | | | 989 | | | | 719 | | | 230 | | | 3,555 | | | | 2,618 | |
| Computer hardware/software expense | | | 686 | | | | 715 | | | 1,032 | | | 2,752 | | | | 2,169 | |
| Professional services | | | 641 | | | | 470 | | | 482 | | | 2,069 | | | | 2,184 | |
| Advertising | | | 1,140 | | | | 710 | | | 868 | | | 3,538 | | | | 2,736 | |
| Loss on OREO and repossessed assets | | | 4,006 | | | | 1,942 | | | 77 | | | 7,028 | | | | (76 | ) |
| Core deposit and other intangible amortization | | | 644 | | | | 649 | | | 674 | | | 2,602 | | | | 2,012 | |
| Other expenses | | | 5,156 | | | | 4,835 | | | 4,811 | | | 18,990 | | | | 16,407 | |
| Total noninterest expense | | | 24,192 | | | | 21,944 | | | 19,644 | | | 85,837 | | | | 69,252 | |
| | | | | | | | | | |
| Income (loss) before income taxes | | | (25,164 | ) | | | 1,830 | | | 3,341 | | | (10,008 | ) | | | 38,520 | |
| | | | | | | | | | |
| Income taxes provision (benefit) | | | (9,930 | ) | | | 596 | | | 583 | | | (4,648 | ) | | | 14,146 | |
| | | | | | | | | | |
| Net income (loss) | | | (15,234 | ) | | | 1,234 | | | 2,758 | | | (5,360 | ) | | | 24,374 | |
| | | | | | | | | | |
| Preferred stock dividends and accretion of discount on warrants | | | 92 | | | | - | | | - | | | 92 | | | | - | |
| | | | | | | | | | |
| Net income (loss) available to common shareholders | | $ | (15,326 | ) | | $ | 1,234 | | $ | 2,758 | | $ | (5,452 | ) | | $ | 24,374 | |
| | | | | | | | | | |
| Comprehensive income | | $ | (16,008 | ) | | $ | 1,547 | | $ | 4,829 | | $ | (7,530 | ) | | $ | 26,010 | |
| | | | | | | | | | |
Per share of common stock: | | | | | | | | | | |
| Basic earnings | | | ($1.18 | ) | | $ | 0.10 | | $ | 0.21 | | | ($0.42 | ) | | $ | 2.07 | |
| Diluted earnings | | | ($1.18 | ) | | $ | 0.10 | | $ | 0.21 | | | ($0.42 | ) | | $ | 2.07 | |
| Dividends | | $ | 0.13 | | | $ | 0.13 | | $ | 0.29 | | $ | 0.52 | | | $ | 0.68 | |
| | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | |
| Basic | | | 12,935,665 | | | | 12,931,774 | | | 12,926,673 | | | 12,932,576 | | | | 11,756,699 | |
| Diluted | | | 12,998,685 | | | | 12,947,618 | | | 12,962,869 | | | 12,990,790 | | | | 11,799,142 | |
| |
| GREEN BANKSHARES, INC. |
| Consolidated Financial Highlights |
| (UNAUDITED) |
| |
| (Dollars in thousands except share and per share data) |
| | | | | | | | | |
| | December 31, | | December 31, | | % | | | | | | | | |
| | 2008 | | 2007 | | Change | | | | | | | | |
Financial Condition Data: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Assets | | $ | 2,944,671 | | | $ | 2,947,741 | | | | -0.10 | % | | | | | | | | |
| Loans, net of unearned interest | | | 2,223,390 | | | | 2,356,376 | | | | -5.64 | % | | | | | | | | |
| Cash and investments | | | 415,607 | | | | 314,615 | | | | 32.10 | % | | | | | | | | |
| Deposits | | | 2,184,147 | | | | 1,986,793 | | | | 9.93 | % | | | | | | | | |
| Federal funds purchased | | | - | | | | 87,787 | | | | -100.00 | % | | | | | | | | |
| FHLB advances and notes payable | | | 229,349 | | | | 318,690 | | | | -28.03 | % | | | | | | | | |
| Subordinated debentures | | | 88,662 | | | | 88,662 | | | | 0.00 | % | | | | | | | | |
| Repurchase agreements | | | 35,302 | | | | 106,738 | | | | -66.93 | % | | | | | | | | |
| Shareholders' equity | | | 381,231 | | | | 322,477 | | | | 18.22 | % | | | | | | | | |
| Tangible shareholders' equity (1) | | | 225,757 | | | | 164,650 | | | | 37.11 | % | | | | | | | | |
| | | | | | | | | | | | | | | |
Ratios: | | | | | | | | | | | | | | | |
| Common book value per share | | $ | 23.56 | | | $ | 24.94 | | | | -5.53 | % | | | | | | | | |
| Tangible book value per share (1) | | $ | 17.22 | | | $ | 12.73 | | | | 35.27 | % | | | | | | | | |
| Total tangible equity to tangible assets (1)(2) | | | 8.09 | % | | | 5.77 | % | | | 40.31 | % | | | | | | | | |
| Tangible common equity to tangible assets (3)(2) | | | 5.50 | % | | | 5.90 | % | | | -6.76 | % | | | | | | | | |
| Average equity to average assets | | | 11.24 | % | | | 10.91 | % | | | 3.02 | % | | | | | | | | |
| Dividend payout ratio | | | 126.83 | % | | | 32.85 | % | (4) | | N/A | | | | | | | | | |
| | | | | | | | | | | | | | | |
| (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. | | | | | | | | |
| (2) Tangible assets is total assets less goodwill and intangible assets. | | | | | | | | |
| (3) Tangible common equity is shareholders'' equity less preferred stock, goodwill and intangible assets. | | | | | | | | |
| (4) Includes special dividend of $0.16 per share paid in December 2007. | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| |
| |
| | Three Months Ended | | | | | Twelve Months Ended | | | | |
| | December 31, | | | | | December 31, | | | | |
| | 2008 | | 2007 | | | % Change | | 2008 | | 2007 | | | | % Change |
Operating Data: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Total Interest Income | | $ | 39,147 | | | $ | 49,911 | | | | -21.57 | % | | $ | 170,516 | | | $ | 176,626 | | | | | -3.46 | % |
| Total Interest Expense | | | 18,022 | | | | 24,305 | | | | -25.85 | % | | | 75,491 | | | | 81,973 | | | | | -7.91 | % |
| Net Interest Income | | | 21,125 | | | | 25,606 | | | | -17.50 | % | | | 95,025 | | | | 94,653 | | | | | 0.39 | % |
| Provision for Loan Losses | | | 32,283 | | | | 10,806 | | | | 198.75 | % | | | 52,810 | | | | 14,483 | | | | | 264.63 | % |
| Net Interest Income After Provision for Loan Losses | | | (11,158 | ) | | | 14,800 | | | | -175.39 | % | | | 42,215 | | | | 80,170 | | | | | -47.34 | % |
| Non-Interest Income | | | 10,186 | | | | 8,185 | | | | 24.45 | % | | | 33,614 | | | | 27,602 | | | | | 21.78 | % |
| Non-Interest Expense | | | 24,192 | | | | 19,644 | | | | 23.15 | % | | | 85,837 | | | | 69,252 | | | | | 23.95 | % |
| Income Before Income Taxes | | | (25,164 | ) | | | 3,341 | | | | -853.19 | % | | | (10,008 | ) | | | 38,520 | | | | | -125.98 | % |
| Income Tax Expense | | | (9,930 | ) | | | 583 | | | | -1803.26 | % | | | (4,648 | ) | | | 14,146 | | | | | -132.86 | % |
| Net income (loss) | | | (15,234 | ) | | | 2,758 | | | | -652.36 | % | | | (5,360 | ) | | | 24,374 | | | | | -121.99 | % |
| Preferred stock dividend and accretion of discount on warrants | | | 92 | | | | - | | | | 100.00 | % | | | 92 | | | | - | | | | | 100.00 | % |
| Net income (loss) available to common shareholders | | $ | (15,326 | ) | | $ | 2,758 | | | | -655.69 | % | | $ | (5,452 | ) | | $ | 24,374 | | | | | -122.37 | % |
| | | | | | | | | | | | | | | |
| Comprehensive Income | | $ | (16,008 | ) | | $ | 4,829 | | | | -431.50 | % | | $ | (7,530 | ) | | $ | 26,010 | | | | | -128.95 | % |
| | | | | | | | | | | | | | | |
Per Share of Common Stock: | | | | | | | | | | | | | | | |
| Basic Earnings | | | ($1.18 | ) | | $ | 0.21 | | | | -661.90 | % | | | ($0.42 | ) | | $ | 2.07 | | | | | -120.29 | % |
| Diluted Earnings | | | ($1.18 | ) | | $ | 0.21 | | | | -661.90 | % | | | ($0.42 | ) | | $ | 2.07 | | | | | -120.29 | % |
| Dividends | | $ | 0.13 | | | $ | 0.29 | | | | -55.17 | % | | $ | 0.52 | | | $ | 0.68 | | | | | -23.53 | % |
| | | | | | | | | | | | | | | |
Weighted Average Shares Outstanding: | | | | | | | | | | | | | | | |
| Basic | | | 12,935,665 | | | | 12,926,673 | | | | | | | 12,932,576 | | | | 11,756,699 | | | | | |
| Diluted | | | 12,998,685 | | | | 12,962,869 | | | | | | | 12,990,790 | | | | 11,799,142 | | | | | |
|
| |
| | | | | |
| | | | |
| | Three Months Ended | | Twelve Months Ended | | | | |
| | December 31, | | September 30, | | December 31, | | December 31, | | | | |
| | 2008 | | 2008 | | 2007 | | 2008 | | 2007 | | | | |
Key Financial Ratios: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Return on Average Assets | | | -2.07 | % | | | 0.16 | % | | | 0.37 | % | | | -0.18 | % | | | 0.98 | % | | | | |
| Return on Average Shareholders' Equity | | | -18.11 | % | | | 1.49 | % | | | 3.34 | % | | | -1.64 | % | | | 8.96 | % | | | | |
| Return on Average Tangible Shareholders' Equity (1) | | | -33.71 | % | | | 2.82 | % | | | 6.59 | % | | | -3.10 | % | | | 15.41 | % | | | | |
| Interest Rate Spread | | | 3.11 | % | | | 3.53 | % | | | 3.54 | % | | | 3.48 | % | | | 3.83 | % | | | | |
| Net Interest Margin | | | 3.30 | % | | | 3.72 | % | | | 3.91 | % | | | 3.70 | % | | | 4.25 | % | | | | |
| Efficiency Ratio | | | 77.26 | % | | | 67.74 | % | | | 58.04 | % | | | 66.73 | % | | | 56.67 | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. | | | | |
| | | | | |
| | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | |
| | December 31, | | September 30, | | December 31, | | | | | | | | |
| | 2008 | | 2008 | | 2007 | | | | | | | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | |
Nonperforming Loans as a Percentage of Total Loans, net of Unearned Income | | | 1.41 | % | | | 1.75 | % | | | 1.36 | % | | | | | | | | |
| Nonperforming Assets as a Percentage of Total Assets | | | 2.61 | % | | | 1.76 | % | | | 1.25 | % | | | | | | | | |
Allowance for Loan Losses as a Percentage of Total Loans, net of Unearned Income | | | 2.20 | % | | | 1.50 | % | | | 1.45 | % | | | | | | | | |
Allowance for Loan Losses as a Percentage of Nonperforming Loans | | | 155.28 | % | | | 85.56 | % | | | 106.34 | % | | | | | | | | |
Net Charge-Offs to Average Total Loans, Net of Unearned Income | | | 1.63 | % | | | 0.84 | % | | | 0.57 | % | | | | | | | | |
| | | | | | | | | |
| |
GREEN BANKSHARES, INC. Consolidated Financial Highlights December 31, 2008 (UNAUDITED) |
| |
Nonperforming Assets and Net Charge-offs | | | | | | |
| | | | | | |
As of and for the year ended December 31, 2008 | | Bank | | Other | | Total |
| Loans past due 90 days and still accruing | | $ | 509 | | $ | - | | $ | 509 |
| Nonaccrual loans | | | 29,956 | | | 970 | | | 30,926 |
| Other real estate owned and repossessed assets | | | 45,054 | | | 317 | | | 45,371 |
| Total nonperforming assets | | $ | 75,519 | | $ | 1,287 | | $ | 76,806 |
| | | | | | |
| Net charge-offs | | $ | 35,564 | | $ | 2,546 | | $ | 38,110 |
| | | | | | |
As of and for the year ended December 31, 2007 | | Bank | | Other | | Total |
| Loans past due 90 days and still accruing | | $ | 18 | | $ | - | | $ | 18 |
| Nonaccrual loans | | | 31,560 | | | 500 | | | 32,060 |
| Other real estate owned and repossessed assets | | | 4,311 | | | 548 | | | 4,859 |
| Total nonperforming assets | | $ | 35,889 | | $ | 1,048 | | $ | 36,937 |
| | | | | | |
| Net charge-offs | | $ | 10,193 | | $ | 1,503 | | $ | 11,696 |
Asset Quality Ratios | | | | | | |
| | | | | | |
As of and for the year ended December 31, 2008 | | Bank | | Other | | Consolidated |
| Nonperforming loans as a percentage of total loans, net of unearned income | | 1.38 | % | | 2.48 | % | | 1.41 | % |
| Nonperforming assets as a percentage of total assets | | 2.58 | % | | 2.57 | % | | 2.61 | % |
| Allowance for loan losses as a percentage of total loans, net of unearned income | | 2.06 | % | | 8.27 | % | | 2.20 | % |
| Allowance for loan losses as a percentage of nonperforming loans | | 149.59 | % | | 333.81 | % | | 155.28 | % |
| Net charge-offs to average total loans, net of unearned income | | 1.53 | % | | 6.42 | % | | 1.63 | % |
| | | | | | |
| | | | | | |
As of and for the year ended December 31, 2007 | | Bank | | Other | | Consolidated |
| Nonperforming loans as a percentage of total loans, net of unearned income | | 1.35 | % | | 1.30 | % | | 1.36 | % |
| Nonperforming assets as a percentage of total assets | | 1.22 | % | | 2.11 | % | | 1.25 | % |
| Allowance for loan losses as a percentage of total loans, net of unearned income | | 1.32 | % | | 7.96 | % | | 1.45 | % |
| Allowance for loan losses as a percentage of nonperforming loans | | 98.37 | % | | 609.80 | % | | 106.34 | % |
| Net charge-offs to average total loans, net of unearned income | | 0.50 | % | | 4.14 | % | | 0.57 | % |
| |
| GREEN BANKSHARES, INC. |
| Condensed Average Balances, Interest Rates and Yields |
| December 31, 2008 |
| |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2008 | | 2007 | | 2008 | | 2007 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Average | | | | Average | | Average | | | | Average | | Average | | | | Average | | Average | | | | Average |
| | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Loans(1)(2) | | 2,228,605 | | 34,986 | | 6.25 | % | | 2,364,964 | | 46,468 | | 7.80 | % | | 2,298,905 | | 155,683 | | 6.77 | % | | 2,059,719 | | 166,759 | | 8.10 | % |
Investment securities(2) | | 293,860 | | 4,282 | | 5.80 | % | | 250,022 | | 3,639 | | 5.77 | % | | 273,343 | | 15,412 | | 5.64 | % | | 178,673 | | 10,366 | | 5.80 | % |
| Other short-term investments | | 49,493 | | 64 | | 0.51 | % | | 384 | | 5 | | 5.17 | % | | 17,941 | | 175 | | 0.98 | % | | 1,054 | | 54 | | 5.12 | % |
| Total interest-earning assets | | 2,571,958 | | 39,332 | | 6.08 | % | | 2,615,370 | | 50,112 | | 7.60 | % | | 2,590,189 | | 171,270 | | 6.61 | % | | 2,239,446 | | 177,179 | | 7.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest earning assets | | 379,429 | | | | | | 318,997 | | | | | | 366,091 | | | | | | 255,908 | | | | |
| Total assets | | 2,951,387 | | | | | | 2,934,367 | | | | | | 2,956,280 | | | | | | 2,495,354 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest checking, money market and savings | | 591,785 | | 1,862 | | 1.25 | % | | 681,366 | | 3,911 | | 2.28 | % | | 645,636 | | 9,588 | | 1.49 | % | | 654,696 | | 16,703 | | 2.55 | % |
| Time deposits | | 1,455,619 | | 12,571 | | 3.44 | % | | 1,130,320 | | 13,484 | | 4.73 | % | | 1,317,362 | | 48,502 | | 3.68 | % | | 951,455 | | 44,669 | | 4.69 | % |
| Total interest bearing-deposits | | 2,047,404 | | 14,433 | | 2.80 | % | | 1,811,686 | | 17,395 | | 3.81 | % | | 1,962,998 | | 58,090 | | 2.96 | % | | 1,606,151 | | 61,372 | | 3.82 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Securities sold under repurchase and short-term borrowings | | 41,540 | | 57 | | 0.55 | % | | 140,282 | | 1,352 | | 3.82 | % | | 106,309 | | 2,111 | | 1.99 | % | | 95,715 | | 4,183 | | 4.37 | % |
| Notes payable | | 318,231 | | 3,532 | | 4.42 | % | | 422,934 | | 5,558 | | 5.21 | % | | 342,816 | | 15,290 | | 4.46 | % | | 307,737 | | 16,418 | | 5.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest-bearing liabilities | | 2,407,175 | | 18,022 | | 2.98 | % | | 2,374,902 | | 24,305 | | 4.06 | % | | 2,412,123 | | 75,491 | | 3.13 | % | | 2,009,603 | | 81,973 | | 4.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-Interest Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand Deposits | | 182,057 | | | | | | 203,750 | | | | | | 187,058 | | | | | | 184,529 | | | | |
| Other Liabilities | | 25,447 | | | | | | 28,478 | | | | | | 24,832 | | | | | | 29,067 | | | | |
| Total Non-Interest Bearing Liabilities | | 207,504 | | | | | | 232,228 | | | | | | 211,890 | | | | | | 213,596 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities | | 2,614,679 | | | | | | 2,607,130 | | | | | | 2,624,013 | | | | | | 2,223,199 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders' equity | | 336,708 | | | | | | 327,237 | | | | | | 332,267 | | | | | | 272,155 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities & shareholders' equity | | 2,951,387 | | | | | | 2,934,367 | | | | | | 2,956,280 | | | | | | 2,495,354 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | | 21,310 | | | | | | 25,807 | | | | | | 95,779 | | | | | | 95,206 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | | | 3.11 | % | | | | | | 3.54 | % | | | | | | 3.48 | % | | | | | | 3.83 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net yield on interest-earning assets (net interest margin) | | | | | | 3.30 | % | | | | | | 3.91 | % | | | | | | 3.70 | % | | | | | | 4.25 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1)2008 average loan balances exclude nonaccrual loans for the periods presented. 2007 average loan balances include nonaccrual loans for the periods presented, as they were not material. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (2)Fully Taxable Equivalent (“FTE”) at the rate of 35%. The FTE basis adjusts for the tax benefits of income on certain tax-exempt loans and investments using the federal statutory rate of 35% for each period presented. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. |
| |
| GREEN BANKSHARES, INC. |
| Consolidated Financial Highlights |
| December 31, 2008 |
| (UNAUDITED) |
| |
| | December 31, 2008 | | September 31, 2008 | | |
Loans | | Balance | | % | | Balance | | % | | % Change |
| Commercial | | $ | 315,099 | | | 14.08 | % | | $ | 319,087 | | | 13.65 | % | | -1.25 | % |
| Commercial real estate | | | 1,430,225 | | | 63.92 | % | | | 1,525,742 | | | 65.27 | % | | -6.26 | % |
| Residential real estate | | | 397,922 | | | 17.78 | % | | | 391,550 | | | 16.75 | % | | 1.63 | % |
| Consumer | | | 89,733 | | | 4.01 | % | | | 91,866 | | | 3.93 | % | | -2.32 | % |
| Other | | | 4,656 | | | 0.21 | % | | | 9,237 | | | 0.40 | % | | -49.59 | % |
| | | 2,237,635 | | | 100.00 | % | | | 2,337,482 | | | 100.00 | % | | -4.27 | % |
| | | | | | | | | | |
| Less: Unearned interest income | | | (14,245 | ) | | | | | (14,406 | ) | | | | |
| Total | | $ | 2,223,390 | | | | | $ | 2,323,076 | | | | | |
| | | | | | | | | | |
Loan Balances by Geographical Region and Operating Subsidiaries | | | | | | | | | | |
| | | | | | | | | | |
| | December 31, 2008 | | September 31, 2008 | | |
| | Loan | | % to | | Loan | | % to | | |
| | Balance | | Total Loans | | Balance | | Total Loans | | % Change |
| | | | | | | | | | |
Northeastern Tennessee Region1 | | $ | 524,535 | | | 23.59 | % | | $ | 546,378 | | | 23.52 | % | | -4.00 | % |
| East Tennessee Region | | | 755,147 | | | 33.96 | % | | | 789,422 | | | 33.98 | % | | -4.34 | % |
| Middle Tennessee Region | | | 903,165 | | | 40.63 | % | | | 947,408 | | | 40.79 | % | | -4.67 | % |
| | | | | | | | | | |
| GCB Acceptance Corporation | | | 16,672 | | | 0.75 | % | | | 16,526 | | | 0.71 | % | | 0.88 | % |
| Superior Financial Services, Inc. | | | 23,871 | | | 1.07 | % | | | 23,342 | | | 1.00 | % | | 2.27 | % |
| | | | | | | | | | |
| Total | | $ | 2,223,390 | | | 100.00 | % | | $ | 2,323,076 | | | 100.00 | % | | -4.29 | % |
1 Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina |
| | | | | | | | | | |
| | | | | | | | | | |
| | December 31, 2008 | | September 31, 2008 | | |
Deposits | | Balance | | % | | Balance | | % | | % Change |
| Non-interest bearing demand | | $ | 176,685 | | | 8.09 | % | | $ | 189,262 | | | 8.31 | % | | -6.65 | % |
| Interest bearing demand | | | 445,927 | | | 20.42 | % | | | 433,735 | | | 19.06 | % | | 2.81 | % |
| Money market and savings | | | 148,286 | | | 6.79 | % | | | 165,343 | | | 7.26 | % | | -10.32 | % |
| Retail time | | | 646,009 | | | 29.58 | % | | | 634,967 | | | 27.90 | % | | 1.74 | % |
| Jumbo time | | | 767,240 | | | 35.13 | % | | | 852,891 | | | 37.47 | % | | -10.04 | % |
| Total | | $ | 2,184,147 | | | 100.01 | % | | $ | 2,276,198 | | | 100.00 | % | | -4.04 | % |
| | | | | | | | | | |
Deposit Balances by Geographical Region | | | | | | | | | | |
| | | | | | | | | | |
| | December 31, 2008 | | September 31, 2008 | | |
| | Balance | | % | | Balance | | % | | % Change |
Northeastern Tennessee Region1 | | $ | 996,712 | | | 45.63 | % | | $ | 1,103,236 | | | 48.47 | % | | -9.66 | % |
| East Tennessee Region | | | 257,716 | | | 11.80 | % | | | 260,211 | | | 11.43 | % | | -0.96 | % |
| Middle Tennessee Region | | | 929,719 | | | 42.57 | % | | | 912,751 | | | 40.10 | % | | 1.86 | % |
| | | | | | | | | | |
| Total | | $ | 2,184,147 | | | 100.00 | % | | $ | 2,276,198 | | | 100.00 | % | | -4.04 | % |
1 Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina |
CONTACT:
Green Bankshares, Inc.
James E. Adams, 423-278-3050
Executive Vice President and Chief Financial Officer
