Exhibit 99.1
Greene County Bancshares Announces Year-End Results for 2004
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Jan. 26, 2005--Greene County
Bancshares, Inc. (NASDAQ/NM:GCBS), the second largest bank holding
company headquartered in Tennessee, today announced results of
operations for the fourth quarter and year ended December 31, 2004. In
addition to higher earnings for 2004 compared with 2003, financial
highlights of the year included significant growth in total assets,
loans, and deposits, as the Company continued to capitalize on its
November 2003 acquisition of Gallatin, Tennessee-based Independent
Bankshares Corporation. The Company's growth also reflected its
ongoing strides to expand in other attractive markets, including
Knoxville and Blount County in East Tennessee and Nashville and
Lawrence County in Middle Tennessee.
Net income for the year ended December 31, 2004, rose 17% to
$12,008,000 from $10,237,000 last year. On a diluted per share basis,
earnings increased more than 5% to $1.55 for 2004 on 7.7 million
weighted average shares outstanding versus $1.47 last year on 7.0
million weighted average shares outstanding. The year-over-year
increase in weighted average shares outstanding primarily reflected
shares issued in connection with the IBC acquisition. Net interest
income, after provision for loan losses, increased 23% to $43,182,000
for 2004 from $35,048,000 in 2003.
During the fourth quarter, the Company incurred substantial
start-up costs relative to its expansion into Nashville with the
formation and staffing of Middle Tennessee Bank & Trust. Additionally,
and more significantly, the Company's provision for loan losses
increased to $2,089,000 in the fourth quarter of 2004 from $1,265,000
in the year-earlier quarter, reflecting both a major acceleration in
loan growth during the fourth quarter, concurrent with the Company's
expansion initiatives, and the write-off of certain commercial loans.
Consequently, after rising on a comparable basis through the first
three quarters of 2004, net income for the fourth quarter of 2004 was
down slightly at $2,668,000 from $2,718,000 in the same 2003 period.
On a diluted per share basis, fourth quarter earnings were $0.34
versus $0.37 in the year-earlier quarter. Net interest income, after
provision for loan losses, was $10,654,000 in the fourth quarter of
2004, up 12% from $9,543,000 in the fourth quarter last year.
Commenting on the announcement, Stan Puckett, Chairman and Chief
Executive Officer, said, "We are pleased that results for the year and
quarter overall showed solid growth in so many areas. Record net
interest income and earnings obviously were financial highlights of
the year, which in turn supported our ongoing effort to increase
dividend payments to our shareholders in 2004. A key performance
measure, organic loan growth, also was strong for the year, but it's
encouraging that 57% of the year's increase occurred in the fourth
quarter, reflecting strong initial benefits from our multi-market
growth strategies."
Elaborating on the reasons for the Company's accelerating loan
growth in the fourth quarter, Puckett said, "Our expansion in and to
new markets helped us build on the momentum created by our 2003
acquisition of seven branches in Middle Tennessee. In 2004, we
established banking operations in Nashville with the opening of our
first branch of Middle Tennessee Bank & Trust, which, like all our
bank brands, operates within our Greene County Bank structure.
Although our investment in this new initiative weighed on fourth
quarter earnings as we assembled a top-flight team of experienced
bankers to lead our efforts there, Middle Tennessee Bank & Trust
provides an exciting complement to our presence north and south of
Nashville. It also ties in with our December 2004 acquisition of three
branches in Lawrence County, now named the Bank of Lawrence County.
Because of these steps, our Middle Tennessee operations have expanded
to 11 branch locations.
"Additional growth occurred for us in East Tennessee during 2004,"
Puckett continued, "particularly in Knoxville and Knox County, as we
continued to capitalize on our late 2003 entry into the market with
our American Fidelity Bank. This success, in turn, reflects the strong
presence American Fidelity Bank has in adjacent Maryville and Blount
County."
Concluding, Puckett added, "Looking across the entire region we
serve, and considering the vibrant economic signals we see in Middle
and East Tennessee, we believe our markets remain very attractive and
continue to hold solid potential for us as we look toward further
growth next year, both in terms of new business and additional
locations. Importantly, the accelerating momentum we saw in our
business at the end of 2004 has continued into the initial quarter of
2005, as indicated by further organic growth in our loan portfolio.
Already, less than one month into the quarter, loans have increased
another $10,500,000. We think this continued momentum shows the
potential of our bank brands, the professionalism of our people, and
the reach of our expansion strategies, all of which position us to
build further on a strong foundation in 2005."
At December 31, 2004, the Company's total assets rose 11% to
$1,233,403,000 from $1,108,522,000 at December 31, 2003. Net loans,
including loans held for sale, increased 10% to $1,032,297,000 at
December 31, 2004, from $941,207,000 at December 31, 2003. Deposits
advanced 10% to $998,022,000 at December 31, 2004, from $907,115,000
at December 31, 2003. Total shareholders' equity increased 7% to
$108,718,000 at December 31, 2004, versus $101,935,000 at the end of
2003. The Company's December 2004 acquisition of three branches in
Lawrence County, Tennessee, contributed approximately $28,000,000 in
loans and $69,000,000 in deposits to the year-end 2004 figures noted
above.
Nonperforming loans as a percentage of total loans increased to
0.65% at December 31, 2004, from 0.47% at December 31, 2003, but
declined from 0.83% at September 30, 2004. Nonperforming assets as a
percentage of total assets fell to 0.69% at year-end 2004 from 1.10%
at September 30, 2004, and 0.79% at year-end 2003. Net charge-offs to
average total loans (net of unearned interest) declined in 2004 to
0.51% from 0.64% at the end of 2003, but were slightly higher than the
annualized rate of 0.47% at September 30, 2004.
Return on average shareholders' equity for the fourth quarter and
the year ended December 31, 2004, was 9.68% and 11.23%, respectively,
versus 11.99% and 12.59%, respectively, for the comparable periods
last year. Return on average total assets for the fourth quarter and
year ended December 31, 2004, was 0.93% and 1.06%, respectively,
compared with 1.08% and 1.12%, respectively, for the same periods in
2003.
Greene County Bancshares, Inc., with total assets of approximately
$1.2 billion, is the holding company for Greene County Bank,
headquartered in Greeneville, Tennessee. Greene County Bank, founded
in 1890, now has 40 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 Lawrence County as Bank
of Lawrence County; 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; in Davidson County as Middle
Tennessee Bank & Trust; 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 Year Ended
December 31, December 31,
----------------------- -----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Interest income $ 17,135 $ 14,792 $ 65,076 $ 56,737
Interest expense 4,392 3,984 16,058 15,914
---------- ---------- ---------- ----------
Net interest
income 12,743 10,808 49,018 40,823
Provision for
loan losses 2,089 1,265 5,836 5,775
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 10,654 9,543 43,182 35,048
Noninterest
income 3,844 3,007 13,028 11,588
Noninterest
expense 10,247 8,315 36,983 30,618
---------- ---------- ---------- ----------
Income before
income taxes 4,251 4,235 19,227 16,018
Income taxes 1,583 1,517 7,219 5,781
---------- ---------- ---------- ----------
Net income $ 2,668 $ 2,718 $ 12,008 $ 10,237
========== ========== ========== ==========
Comprehensive
income $ 2,569 $ 2,721 $ 11,795 $ 10,267
========== ========== ========== ==========
Earnings per share:
Basic $ 0.35 $ 0.38 $ 1.57 $ 1.48
========== ========== ========== ==========
Diluted $ 0.34 $ 0.37 $ 1.55 $ 1.47
========== ========== ========== ==========
Weighted average
shares:
Basic 7,657 7,196 7,652 6,916
========== ========== ========== ==========
Diluted 7,736 7,268 7,734 6,986
========== ========== ========== ==========
Dividends declared
per share $ 0.25 $ 0.23 $ 0.61 $ 0.59
========== ========== ========== ==========
Dec. 31, Dec. 31,
2004 2003
---------- ----------
Total assets $1,233,403 $1,108,522
Cash and cash equivalents 70,648 41,341
Investment securities 45,910 44,823
Loans, net (1) 1,032,297 941,207
Deposits 998,022 907,115
Shareholders' equity 108,718 101,935
Tangible shareholders' equity (2) 85,023 80,965
Book value per share 14.22 13.31
Tangible book value per share (2) 11.12 10.57
(1) Includes loans held for sale.
(2) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
For unaudited financial statements for the fourth quarter and year
ended December 31, 2004 and 2003, along with related information,
click the following links: http://www.irinfo.com/gcbs/4q04fs.pdf or
http://www.irinfo.com/gcbs/4q03fs.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.
William F. Richmond, 423-278-3050