EXHIBIT 99.1
Greene County Bancshares Announces Higher Third Quarter and Year-to-Date
Earnings
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 19, 2004--Greene County
Bancshares, Inc. (NASDAQ/NM: GCBS), the second largest bank holding
company headquartered in Tennessee, today announced higher earnings
for the third quarter and nine months ended September 30, 2004,
compared with comparable periods last year. As has been the case
throughout 2004, the Company's results continued to reflect the
positive impact of its November 2003 acquisition of Gallatin,
Tennessee-based Independent Bankshares Corporation, as well as growth
in other markets, particularly in Knoxville and Blount County.
Net income for the third quarter of 2004 increased 24% to
$3,213,000 from $2,600,000 in the same period last year. On a diluted
per share basis, third quarter earnings rose 11% to $0.42 on 7.7
million weighted average shares outstanding versus $0.38 on 6.9
million weighted average shares outstanding in the year-earlier
quarter. The year-over-year increase in weighted average shares
outstanding reflected shares issued in connection with the IBC
acquisition. Net interest income, after provision for loan losses,
increased 33% to $11,350,000 in the third quarter of 2004 from
$8,502,000 in the third quarter last year.
Net income for the first nine months of 2004 rose 24% to
$9,340,000 from $7,519,000 in the comparable period last year. On a
diluted per share basis, year-to-date earnings for 2004 increased 11%
to $1.21 versus $1.09 in the same period last year. Net interest
income, after provision for loan losses, increased 28% to $32,528,000
for the first nine months of 2004 from $25,505,000 in the same period
last year.
Commenting on the announcement, Stan Puckett, Chairman and Chief
Executive Officer, said, "It's gratifying to see the positive impact
our expansion in the Middle Tennessee area has had on the Company's
financial results throughout 2004. Equally important, we recognize the
strategic significance of this expansion and its potential to improve
efficiencies, grow market share, and enhance our long-term returns to
shareholders.
"In this regard, we are pleased to have recently announced
additional steps designed to enhance our presence in Middle
Tennessee," Puckett continued. "In September, Greene County Bank
agreed to purchase three branch offices in Lawrence County, Tennessee,
from National Bank of Commerce. These branches, two located in
Lawrenceburg and the third in St. Joseph, are led by a talented,
community-focused staff and currently have approximately $68 million
in deposits and $31 million in loans outstanding. That transaction is
expected to be completed by year's end, subject to regulatory
approvals and other customary conditions. Also last month, Greene
County Bank announced plans to establish new banking operations in
Nashville to serve the surrounding metropolitan area. An outstanding
management team for these operations, tentatively named Middle
Tennessee Bank and Trust subject to regulatory approval, already has
been assembled to support plans to open offices throughout the area,
with a focus on Davidson and Williamson Counties. Each of these
locations will operate as a branch office of Greene County Bank.
"We are excited to have these opportunities to build our presence
in Middle Tennessee and promote our style of service-oriented
community banking across the region," he added. "We think Middle
Tennessee is one of the most attractive markets in the Southeast, and
our new banking operations in Nashville are expected to complement our
existing presence in the mid-state and help fill in the market between
Sumner and Rutherford Counties. We also look forward to completing the
acquisition of the three branches in Lawrence County, which we view as
another attractive opportunity for expansion in the Middle Tennessee
area."
At September 30, 2004, the Company's total assets increased 1% to
$1,120,228,000 from $1,108,522,000 at December 31, 2003, and were 23%
ahead of the $914,081,000 in total assets reported as of September 30,
2003. Net loans, including loans held for sale, increased 3% to
$968,521,000 at September 30, 2004, from $941,207,000 at December 31,
2003, and were 21% higher than net loans, including loans held for
sale, of $799,666,000 at September 30, 2003. Deposits declined 3% to
$878,088,000 at September 30, 2004, from $907,115,000 at December 31,
2003, as the Company continued to shed higher priced deposits, but
were 25% higher than the $704,499,000 in deposits reported at the end
of the third quarter of 2003. Total shareholders' equity increased 6%
to $108,014,000 at September 30, 2004, versus $101,935,000 at the end
of 2003, and was 35% higher than total shareholders' equity of
$79,722,000 at September 30, 2003.
Return on average shareholders' equity for the third quarter and
the nine months ended September 30, 2004, was 11.91% and 11.77%,
respectively, versus 13.02% and 12.83%, respectively, for the
comparable periods last year. Return on average total assets for the
third quarter and nine months ended September 30, 2004, was 1.15% and
1.11%, respectively, compared with 1.16% and 1.13%, respectively, for
the same periods in 2003.
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, founded
in 1890, now has 37 branches throughout East and Middle Tennessee, one
branch in Bristol, Virginia, one branch in western North Carolina, and
a trust services office in Lebanon, Tennessee. 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
the City of Bristol, Virginia as First Bristol Bank; and in Wilson
County, Tennessee as President's Trust. 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 insurance company.
GREENE COUNTY BANCSHARES, INC.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2004 2003 2004 2003
------- ------- ------- -------
Interest income $16,142 $13,863 $47,941 $41,945
Interest expense 3,730 3,706 11,666 11,930
------- ------- ------- -------
Net interest income 12,412 10,157 36,275 30,015
Provision for loan losses 1,062 1,655 3,747 4,510
------- ------- ------- -------
Net interest income after
provision for loan losses 11,350 8,502 32,528 25,505
Noninterest income 3,020 2,960 9,184 8,581
Noninterest expense 9,211 7,379 26,736 22,303
------- ------- ------- -------
Income before income taxes 5,159 4,083 14,976 11,783
Income taxes 1,946 1,483 5,636 4,264
------- ------- ------- -------
Net income $ 3,213 $ 2,600 $ 9,340 $ 7,519
======= ======= ======= =======
Comprehensive income $ 3,418 $ 2,550 $ 9,226 $ 7,546
======= ======= ======= =======
Earnings per share:
Basic $ 0.42 $ 0.38 $ 1.22 $ 1.10
======= ======= ======= =======
Diluted $ 0.42 $ 0.38 $ 1.21 $ 1.09
======= ======= ======= =======
Weighted average shares:
Basic 7,645 6,823 7,657 6,822
======= ======= ======= =======
Diluted 7,710 6,894 7,725 6,893
======= ======= ======= =======
Dividends declared
per share $ 0.12 $ 0.12 $ 0.36 $ 0.36
======= ======= ======= =======
Sept. 30, Dec. 31, Sept. 30,
2004 2003 2003
---------- ---------- ----------
Total assets $1,120,228 $1,108,522 $ 914,081
Cash and cash equivalents 31,172 41,341 31,239
Investment securities 38,234 44,823 28,109
Loans, net (1) 968,521 941,207 799,666
Deposits 878,088 907,115 704,499
Shareholders' equity 108,014 101,935 79,722
Tangible shareholders'
equity (2) 87,506 80,965 77,048
Book value per share 14.13 13.31 11.68
Tangible book value per
share (2) 11.45 10.57 11.29
(1) Includes loans held for sale.
(2) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
For unaudited financial statements for the third quarter and nine
months ended September 30, 2004 and 2003, along with related
information, click the following links:
http://www.irinfo.com/gcbs/3q04fs.pdf or
http://www.irinfo.com/gcbs/3q03fs.pdf.
This news release may contain forward-looking statements regarding
Greene County Bancshares, Inc., as defined in Section 21E of the
Securities Exchange Act of 1934. 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.
CONTACT: Greene County Bancshares, Inc., Greeneville
William F. Richmond, 423-278-3050