Exhibit 99.1
Greene County Bancshares Reports Second Quarter Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 16, 2003--Greene County
Bancshares, Inc. (NASDAQ/NM: GCBS) today announced results for the
second quarter and six-month period ended June 30, 2003.
For the second quarter of 2003, net income was $2,301,000 or $0.33
per diluted share compared with $2,667,000 or $0.39 per diluted share
in the same period last year. Net interest income after provision for
loan losses totaled $8,324,000 in the second quarter of 2003 versus
$8,993,000 in the same period last year.
For the six months ended June 30, 2003, net income was $4,919,000
or $0.71 per diluted share compared with $5,236,000 or $0.77 per
diluted share in the first half of 2002. Net interest income after
provision for loan losses totaled $17,003,000 for the first half of
2003 compared with $17,500,000 in the same period last year.
Commenting on the announcement, Stan Puckett, Chairman and Chief
Executive Officer, said, "Although the Company's net income for the
second quarter and year-to-date period have not fully matched those of
the corresponding periods last year, we believe our earnings
nevertheless remain at healthy levels, especially considering the
continued pressure on interest margins caused by an ongoing
deceleration in market interest rates. Our ability to generate solid
earnings in this environment reflects the strength of our banking
franchise and the platform for continued loan growth that it provides,
as well as the steady increase in noninterest income we have achieved.
We will continue to focus on the fundamentals in our business that
will drive earnings growth over the longer term and help position our
franchise for the times ahead when interest rate pressures abate and
economic conditions begin to show meaningful improvements."
With respect to the Company's strategies to expand its markets,
Puckett noted that, in June, Greene County Bancshares agreed to
acquire Gallatin, Tennessee-based Independent Bankshares Corporation
("IBC") in a merger that is expected create a bank holding company
with combined assets of approximately $1.1 billion. IBC is a bank
holding company for First Independent Bank, which has four offices in
Gallatin and Hendersonville, Tennessee, and Rutherford Bank and Trust,
with three offices in Murfreesboro and Smyrna, Tennessee. The Company
expects to complete the transaction in the fourth quarter of 2003,
subject to the approval of IBC shareholders and banking regulators and
the satisfaction of usual and customary closing conditions.
At June 30, 2003, the Company's total assets totaled $909,101,000
compared with $899,396,000 at December 31, 2002. Net loans receivable
were $760,437,000 at June 30, 2003, versus $737,671,000 at year-end
2002. Deposits totaled $704,909,000 at June 30, 2003, compared with
$719,323,000 at December 31, 2002. Total shareholders' equity was
$77,991,000 at June 30, 2003, versus $74,595,000 at December 31, 2002.
Return on average shareholders' equity for the second quarter and
the six months ended June 30, 2003, was 11.78% and 12.73%,
respectively, versus 14.76% and 14.68%, respectively, for the
comparable periods last year. Return on average total assets for the
second quarter and six months ended June 30, 2003, was 1.04% and
1.11%, respectively, compared with 1.30% and 1.26%, respectively, for
the same periods in 2002. The ratio of non-performing assets to total
assets was 1.10% at June 30, 2003, compared with 1.48% at December 31,
2002, and 1.19% a year ago.
This news release may contain forward-looking statements regarding
Greene County Bancshares, Inc. 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. A discussion of factors that could cause
actual results to differ materially from those expressed in the
forward-looking statements is included in the Greene County
Bancshares, Inc. filings with the Securities and Exchange Commission.
Greene County Bancshares, Inc., with total assets of approximately
$909 million, is the holding company for Greene County Bank
headquartered in Greeneville, Tennessee. Greene County Bank is the
largest community bank in East Tennessee and now has 29 branches
throughout East Tennessee, one branch in Western North Carolina, a
trust services office in Lebanon, Tennessee, and one loan production
office in Bristol, Virginia. Greene County Bank does business in
Washington County, Tennessee as Washington County Bank; in Sullivan
County, Tennessee as Sullivan County Bank and First Bristol Bank; in
Hamblen County, Tennessee as Hamblen County Bank; in Blount County,
Tennessee as American Fidelity Bank; in McMinn County, Tennessee as
Bank of Athens and Bank of Niota; in Hawkins County, Tennessee as
Hawkins County Bank and Bank of Bulls Gap; in Cocke County, Tennessee
as Cocke County Bank; in Loudon County, Tennessee as Community Bank of
Loudon County; in Monroe County, Tennessee as Community Trust Bank; in
Wilson County, Tennessee as President's Trust, and in the City of
Bristol, Virginia as First Bristol Loans. In addition, Greene County
Bank also 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 subprime automobile lending; and Fairway Title Co., a
title company.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Interest income $ 14,082 $ 14,966 $ 28,082 $ 29,888
Interest expense 4,029 4,604 8,224 9,712
---------- ---------- ---------- ----------
Net interest
income 10,053 10,362 19,858 20,176
Provision for
loan losses 1,729 1,369 2,855 2,676
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 8,324 8,993 17,003 17,500
Noninterest
income 2,897 2,572 5,621 5,159
Noninterest
expense 7,692 7,273 14,924 14,308
---------- ---------- ---------- ----------
Income before
income taxes 3,529 4,292 7,700 8,351
Income taxes 1,228 1,625 2,781 3,115
---------- ---------- ---------- ----------
Net income $ 2,301 $ 2,667 $ 4,919 $ 5,236
========== ========== ========== ==========
Comprehensive
income $ 2,299 $ 2,833 $ 4,996 $ 5,328
========== ========== ========== ==========
Earnings per share:
Basic $ 0.34 $ 0.39 $ 0.72 $ 0.77
========== ========== ========== ==========
Diluted $ 0.33 $ 0.39 $ 0.71 $ 0.77
========== ========== ========== ==========
Weighted average
shares:
Basic 6,822,235 6,818,890 6,821,392 6,818,890
========== ========== ========== ==========
Diluted 6,905,852 6,834,909 6,905,437 6,834,909
========== ========== ========== ==========
Dividends declared
per share $ 0.12 $ 0.12 $ 0.24 $ 0.24
========== ========== ========== ==========
June 30, Dec. 31,
2003 2002
---------- ----------
Total assets $ 909,101 $ 899,396
Cash and cash equivalents 42,035 62,959
Investment securities 48,005 38,514
Loans, net 760,437 737,671
Deposits 704,909 719,323
Shareholders' equity 77,991 74,595
Book value per share 11.43 10.94
Unaudited financial statements for the second quarter and six
months ended June 30, 2003 and 2002, along with related information,
are available on the Company's website at www.mybankconnection.com
(select Bank, then About Us/Press Releases).
CONTACT: Greene County Bancshares Inc., Greeneville
William F. Richmond, 423-787-1211