Exhibit 99.1
Greene County Bancshares Reports 14% Increase in Second Quarter
Earnings Per Share
GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 19, 2005--Greene County
Bancshares, Inc. (NASDAQ:GCBS) today announced continued growth in
the second quarter and six-month period ended June 30, 2005. Building
on the momentum that characterized the Company's results earlier this
year, the second quarter results reflected ongoing strong loan demand
and deposit growth, as recent expansion in Middle Tennessee and the
greater Knoxville area continued to augment solid operations across
the Company's more established markets.
For the second quarter of 2005, net income increased 13% to
$3,714,000 or $0.48 per diluted share compared with $3,275,000 or
$0.42 per diluted share in the year-earlier period. Net interest
income for the second quarter increased 17% to $14,072,000 from
$11,983,000 in the year-earlier period. Net interest income after
provision for loan losses rose 20% to $13,012,000 in the second
quarter of 2005 versus $10,821,000 in the same period last year,
reflecting a 9% decline in the provision for loan losses to $1,060,000
in the current quarter from $1,162,000 in the second quarter of last
year. The decline in the provision, even with loan portfolio growth,
reflects continued improvements in the Company's overall asset
quality.
Commenting on the second quarter results, Stan Puckett, Chairman
and Chief Executive Officer, said, "The second quarter results were
highlighted by low loan losses, solid loan growth and improvement in
non-interest income. Annualized net charge-offs to average total loans
(net of unearned interest) fell to 0.27% for the six months ended June
30, 2005, from 0.48% in the comparable 2004 period; for the year ended
December 31, 2004, the figure was 0.51%. This trend continued the
improvement in credit quality that began in 2001. Annualized loan
growth for the first half of 2005 was 21% and is the result of recent
expansions in Middle Tennessee and Knoxville as well as solid
performances by our existing Washington County Bank, First Bristol
Bank and American Fidelity Bank offices. Non-interest income grew 13%
in the second quarter versus the same period in 2004 and 9% over the
first quarter of 2005. In late February of this year, we kicked off
our High Performance Checking program. During the last four months,
customers opened over 5,500 new personal checking accounts, more than
double the pace for the same period in 2004. We believe that our
employees' commitment to this long-term initiative will continue to
grow core deposits and non-interest income.
"Our net interest margin for the second quarter was a
disappointment - down 12 basis points compared with the year-earlier
period and a drop of seven basis points sequentially when compared
with the first quarter of 2005 - representing the second consecutive
quarter of declines in this area. Despite our asset-sensitive balance
sheet, deposit costs have continued to rise faster than loan yields.
Improvements in margin management are a top priority for the remainder
of 2005."
For the six months ended June 30, 2005, net income increased 9% to
$6,649,000 or $0.86 per diluted share from $6,127,000 or $0.79 per
diluted share in the first half of 2004. Net interest income after
provision for loan losses increased 17% to $24,717,000 for the first
half of 2005 compared with $21,178,000 in the same period last year.
At June 30, 2005, the Company's total assets increased 11% to
$1,374,194,000 from $1,233,403,000 at December 31, 2004, and were 22%
ahead of the $1,125,002,000 in total assets reported as of June 30,
2004. Net loans, including loans held for sale, increased 11% to
$1,142,821,000 at June 30, 2005, from $1,032,297,000 at December 31,
2004, and were 17% higher than net loans, including loans held for
sale, of $972,956,000 at June 30, 2004. Deposits increased 15% to
$1,148,434,000 at June 30, 2005, from $998,022,000 at December 31,
2004, and were 30% ahead of deposits of $884,014,000 as of June 30,
2004. Total shareholders' equity increased 4% to $113,486,000 at June
30, 2005, versus $108,718,000 at December 31, 2004, and was 8% higher
than total shareholders' equity of $105,509,000 at June 30, 2004.
Annualized return on average shareholders' equity for the second
quarter and the six months ended June 30, 2005, was 13.11% and 11.86%,
respectively, versus 12.39% and 11.69%, respectively, for the
comparable periods last year. Return on average total assets for the
second quarter and six months ended June 30, 2005, was 1.11% and
1.02%, respectively, compared with 1.17% and 1.09%, respectively, for
the same periods in 2004.
Greene County Bancshares, Inc., with total assets of approximately
$1.4 billion, is the holding company for Greene County Bank,
headquartered in Greeneville, Tennessee. Greene County Bank, founded
in 1890, now has 41 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,
Tennessee 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 and Williamson County, Tennessee 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.
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.
GREENE COUNTY BANCSHARES, INC.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Interest income $ 20,703 $ 15,869 $ 39,438 $ 31,799
Interest expense 6,631 3,886 12,039 7,936
---------- ---------- ---------- ----------
Net interest
income 14,072 11,983 27,399 23,863
Provision for
loan losses 1,060 1,162 2,682 2,685
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 13,012 10,821 24,717 21,178
Noninterest income 3,463 3,070 6,639 6,164
Noninterest expense 10,422 8,574 20,697 17,525
---------- ---------- ---------- ----------
Income before
income taxes 6,053 5,317 10,659 9,817
Income taxes 2,339 2,042 4,010 3,690
---------- ---------- ---------- ----------
Net income $ 3,714 $ 3,275 $ 6,649 $ 6,127
========== ========== ========== ==========
Comprehensive
income $ 3,732 $ 2,935 $ 6,554 $ 5,808
========== ========== ========== ==========
Earnings per share:
Basic $ 0.49 $ 0.43 $ 0.87 $ 0.80
========== ========== ========== ==========
Diluted $ 0.48 $ 0.42 $ 0.86 $ 0.79
========== ========== ========== ==========
Weighted average shares:
Basic 7,651 7,657 7,650 7,662
========== ========== ========== ==========
Diluted 7,746 7,714 7,745 7,720
========== ========== ========== ==========
Dividends declared
per share $ 0.12 $ 0.12 $ 0.24 $ 0.24
========== ========== ========== ==========
June 30, Dec. 31, June 30,
2005 2004 2004
---------- ---------- ----------
Total assets $1,374,194 $1,233,403 $1,125,002
Cash and cash equivalents 81,936 70,648 34,445
Investment securities 61,035 45,910 38,140
Loans, net (1) 1,142,821 1,032,297 972,956
Deposits 1,148,434 998,022 884,014
Shareholders' equity 113,486 108,718 105,509
Tangible shareholders'
equity (2) 90,167 85,023 84,848
Book value per share 14.83 14.22 13.80
Tangible book value per
share (2) 11.78 11.12 11.10
(1) Includes loans held for sale.
(2) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
For unaudited financial statements for the second quarter and six
months ended June 30, 2005 and 2004, along with related information,
click the following links: http://www.irinfo.com/gcbs/2q05fsp.pdf or
http://www.irinfo.com/gcbs/2q04fs.pdf.
CONTACT: Greene County Bancshares Inc.
William F. Richmond, 423-278-3050