Exhibit 99.1
Greene County Bancshares Announces Record Fourth Quarter Results,
as Net Income Increases 42% to $0.37 Per Diluted Share
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Jan. 28, 2004--Greene County
Bancshares, Inc. (NASDAQ/NM: GCBS) today announced record results for
the fourth quarter ended December 31, 2003, highlighted by a 53%
increase in net income and a 42% increase in earnings per diluted
share. The Company's strong finish to the year, reflecting the
positive impact of its recent expansion in the Middle Tennessee region
as well as an improving performance in the Company's other banking
operations, helped produce the third consecutive year of higher
earnings for Greene County Bancshares. This performance also helped
lift the Company's total assets to more than $1.1 billion by year's
end and pushed shareholders' equity to more than $100 million -- both
record amounts.
For the fourth quarter of 2003, net income increased to $2,718,000
or $0.37 per diluted share from $1,772,000 or $0.26 per diluted share
in the same period last year. Net interest income after provision for
loan losses increased 29% to $9,543,000 in the fourth quarter of 2003
from $7,370,000 in the same period last year.
For the year ended December 31, 2003, net income increased 4% to
$10,237,000 or $1.47 per diluted share compared with $9,813,000 or
$1.43 per diluted share in 2002. Net interest income after provision
for loan losses totaled $35,048,000 for 2003, up 3% from $34,184,000
last year.
Other performance measures also reflected the significant upturn
in the Company's earnings for the fourth quarter of 2003. Return on
average shareholders' equity for the quarter advanced to 11.99% from
9.35% in the year-earlier quarter, while return on average assets
increased to 1.08% versus 0.82% in the fourth quarter of 2002. For the
full year ended December 31, 2003, the return on average shareholders'
equity and average assets was 12.59% and 1.12%, respectively, versus
13.40% and 1.17% for 2002, respectively.
Commenting on the announcement, Stan Puckett, Chairman and Chief
Executive Officer, said, "We are delighted to report record earnings
and continued growth in 2003. Although the past year was challenging,
marked with economic uncertainty and pressure on interest rate
margins, I am proud of the way our company has faced these issues as
we continued to build on our financial strength and expand the reach
of our banking network. This progress, especially the acceleration in
earnings we witnessed in the fourth quarter and the opportunities
associated with our expanded presence in Middle Tennessee, helps
strengthen our conviction that the Company's prospects in the year
ahead remain bright, and that we are well positioned with the people,
services, locations and strategies necessary to extend our record of
growth in 2004.
"Of course, one of the most significant events of 2003 -- indeed,
one of the most important events in our 113-year history -- was our
November acquisition of Gallatin, Tennessee-based Independent
Bankshares Corporation," he continued. "It was the largest single
acquisition we have ever completed, adding seven branches to our
network under the names First Independent Bank and Rutherford Bank and
Trust, and providing Greene County Bancshares with an immediate
presence in Gallatin, Hendersonville, Murfreesboro and Smyrna. While
noteworthy in its own right, it also complements our efforts to expand
in existing markets, as we have done recently in Knoxville and Knox
County, and shows that select transactions like this will continue to
play an important role in our larger strategy of geographic expansion
over time."
During 2003, the Company's total assets increased 23% to
$1,108,522,000 from $899,396,000 at December 31, 2002. Net loans
receivable increased 27% to $937,661,000 at December 31, 2003, from
$737,671,000 at December 31, 2002. Deposits increased 26% to
$907,115,000 at December 31, 2003, from $719,323,000 at year-end 2002.
Total shareholders' equity increased 37% to $101,935,000 at December
31, 2003, from $74,595,000 at end of 2002.
During the fourth quarter, and for the year 2003, the Company
continued to see general improvement in its asset quality. The
provision for loan losses declined 58% to $1,265,000 in the fourth
quarter of 2003 versus $3,035,000 in the year-earlier period, while
the annual provision amount declined 18% to $5,775,000 for 2003
compared with $7,065,000 in 2002. The ratio of non-performing assets
to total assets was 0.79% at December 31, 2003, compared with 1.48% at
December 31, 2002.
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
$1.1 billion, 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 37 branches
throughout East and Middle 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
Sumner County, Tennessee as First Independent Bank; in Rutherford
County, Tennessee as Rutherford Bank and Trust; 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.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Interest income $ 14,792 $ 14,867 $ 56,737 $ 59,929
Interest expense 3,984 4,462 15,914 18,680
---------- ---------- ---------- ----------
Net interest
income 10,808 10,405 40,823 41,249
Provision for
loan losses 1,265 3,035 5,775 7,065
---------- ---------- ---------- ----------
Net interest income
after provision
for loan losses 9,543 7,370 35,048 34,184
Noninterest income 3,007 2,835 11,588 10,530
Noninterest expense 8,315 7,623 30,618 29,199
---------- ---------- ---------- ----------
Income before
income taxes 4,235 2,582 16,018 15,515
Income taxes 1,517 810 5,781 5,702
---------- ---------- ---------- ----------
Net income $ 2,718 $ 1,772 $ 10,237 $ 9,813
========== ========== ========== ==========
Comprehensive
income $ 2,721 $ 1,753 $ 10,267 $ 9,905
========== ========== ========== ==========
Earnings per share:
Basic $ 0.38 $ 0.26 $ 1.48 $ 1.44
========== ========== ========== ==========
Diluted $ 0.37 $ 0.26 $ 1.47 $ 1.43
========== ========== ========== ==========
Weighted average
shares:
Basic 7,196 6,821 6,916 6,820
========== ========== ========== ==========
Diluted 7,268 6,848 6,986 6,847
========== ========== ========== ==========
Dividends declared
per share $ 0.23 $ 0.22 $ 0.59 $ 0.58
========== ========== ========== ==========
Dec. 31, Dec. 31,
2003 2002
---------- ----------
Total assets $1,108,522 $ 899,396
Cash and cash equivalents 41,341 62,959
Investment securities 44,823 38,514
Loans, net 937,661 737,671
Deposits 907,115 719,323
Shareholders' equity 101,935 74,595
Book value per share 13.31 10.94
For unaudited quarterly financial statements for the fourth
quarter and year ended December 31, 2003 and 2002, along with related
information, click here: http://www.irinfo.com/gcbs/4q03fs.pdf.
CONTACT: Greene County Bancshares, Inc.
William F. Richmond, 423-787-1211