Greene County Bancshares Announces Third Quarter Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 22, 2003--Greene County
Bancshares, Inc. (NASDAQ/NM:GCBS) today announced earnings for the
third quarter and the nine-month period ended September 30, 2003.
Net income for the third quarter of 2003 was $2,600,000 compared
with $2,805,000 in the same period last year. On a diluted per share
basis, earnings for the third quarter of 2003 totaled $0.38 versus
$0.41 in the year-earlier quarter. Net interest income after provision
for loan losses was $8,502,000 in the third quarter of 2003 versus
$9,314,000 in the third quarter last year.
Net income for the first nine months of 2003 was $7,519,000
compared with $8,041,000 in the first nine months of 2002. On a
diluted per share basis, year-to-date earnings for 2003 were $1.09
versus $1.18 in the year-earlier period. Net interest income after
provision for loan losses totaled $25,505,000 for the first nine
months of 2003 compared with $26,814,000 in the same period last year.
Commenting on the announcement, Stan Puckett, Chairman and Chief
Executive Officer, said, "With another cut in the Federal Funds rate
in June, the thirteenth in this cycle, the continued pressure on
interest rate margins caused by a current low-interest rate
environment comes as no surprise. At Greene County Bancshares, we have
worked to mitigate this impact by growing our loan portfolio and
expanding our noninterest income. These strategies, combined with our
strong franchise across the region, contributed to another profitable
quarter in the face of demanding economic conditions - with quarterly
earnings that are exceeded only by the record results we posted last
year. And while current interest rate pressures obscure some of the
progress we have achieved, and clearly present ongoing challenges in
the near term, we remain confident that our product breadth and market
reach position us for renewed earnings growth over the longer term."
During the first nine months of 2003, the Company's total assets
increased 2% to $914,006,000 from $899,396,000 at December 31, 2002.
Net loans receivable increased 8% to $795,824,000 at September 30,
2003, from $737,671,000 at December 31, 2002. Deposits declined 2% to
$704,499,000 at the end of the third quarter from $719,323,000 at
year-end 2002. Total shareholders' equity increased 7% to $79,722,000
at September 30, 2003, from $74,595,000 at December 31, 2002. Return
on average shareholders' equity for the third quarter and year-to-date
period ended September 30, 2003, was 13.0% and 12.8%, respectively,
versus 15.1% and 14.8%, respectively, for the comparable periods last
year. Return on average total assets for the third quarter and
year-to-date period ended September 30, 2003, was 1.16% and 1.13%,
respectively, compared with 1.35% and 1.29%, respectively, for the
same periods in 2002. The ratio of non-performing assets to total
assets was 1.09% at September 30, 2003, compared with 1.48% at
December 31, 2002, and 1.48% at the end of the third quarter last
year.
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
$914 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 30 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 Blount
County and Knox County, Tennessee as American Fidelity Bank; in
Sullivan County, Tennessee as Sullivan County Bank and First Bristol
Bank; in Hamblen County, Tennessee as Hamblen County 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.
GREENE COUNTY BANCSHARES, INC.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
Interest income $ 13,863 $ 15,174 $ 41,945 $ 45,062
Interest expense 3,706 4,506 11,930 14,218
-------- -------- -------- --------
Net interest income 10,157 10,668 30,015 30,844
Provision for loan losses 1,655 1,354 4,510 4,030
-------- -------- -------- --------
Net interest income after
provision for loan losses 8,502 9,314 25,505 26,814
Noninterest income 2,960 2,536 8,581 7,695
Noninterest expense 7,379 7,268 22,303 21,576
-------- -------- -------- --------
Income before income taxes 4,083 4,582 11,783 12,933
Income taxes 1,483 1,777 4,264 4,892
-------- -------- -------- --------
Net income $ 2,600 $ 2,805 $ 7,519 $ 8,041
======== ======== ======== ========
Comprehensive income $ 2,550 $ 2,824 $ 7,546 $ 8,152
======== ======== ======== ========
Earnings per share:
Basic $ 0.38 $ 0.41 $ 1.10 $ 1.18
======== ======== ======== ========
Diluted $ 0.38 $ 0.41 $ 1.09 $ 1.18
======== ======== ======== ========
Weighted average shares:
Basic 6,823 6,821 6,822 6,819
======== ======== ======== ========
Diluted 6,894 6,839 6,893 6,839
======== ======== ======== ========
Dividends declared
per share $ 0.12 $ 0.12 $ 0.36 $ 0.36
======== ======== ======== ========
Sept. 30, Dec. 31,
2003 2002
-------- --------
Total assets $914,081 $899,396
Cash and cash equivalents 31,239 62,959
Investment securities 28,109 38,514
Loans, net 795,824 737,671
Deposits 704,499 719,323
Shareholders' equity 79,722 74,595
Book value per share 11.68 10.94
For unaudited quarterly financial statements for the third quarter
and nine months ended September 30, 2003 and 2002, along with related
information, click here: http://www.irinfo.com/gcbs/3q03fs.pdf.
CONTACT: Greene County Bancshares Inc., Greeneville
William F. Richmond, 423-787-1211