Exhibit 99.1
Greene County Bancshares Reports Record Third Quarter Results
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 16, 2006--Greene County
Bancshares, Inc. (NASDAQ:GCBS), the third largest bank holding company
headquartered in the State of Tennessee, today announced record third
quarter and nine-month 2006 earnings of $5,509,000 and $16,088,000,
respectively, reflecting increases of 50% and 56% over comparable
year-earlier periods. Diluted per share earnings for the third quarter
of 2006 reached $0.56 for an increase of 19% over the third quarter of
2005, while diluted earnings per share for the 2006 year-to-date
period totaled $1.63 and represented an improvement of 23% over
year-to-date 2005.
Commenting on the Company's announcement, Stan Puckett, Chairman
and Chief Executive Officer, said, "We are pleased to note increasing
momentum in our operations, driven by an expanding loan portfolio,
stable net interest margins, improving asset quality measures, and
continued growth in non-interest income. These broad trends have
translated into strong earnings growth for the Company and solid
returns for our shareholders."
Return on Average Assets (ROAA) improved notably compared with the
year-earlier period. The Company's ROAA was 1.32% in the third quarter
of 2006 compared with 1.34% in the second quarter of 2006 and 1.07% in
the year-earlier quarter. Return on Average Equity, reflecting the
issuance of new stock in the fourth quarter of 2005, was 12.22% in the
third quarter of 2006 compared with 12.43% in the second quarter of
2006 and 12.52% in the third quarter of 2005. Return on Average
Tangible Equity (average shareholders' equity less goodwill and
intangible assets) was 15.59% in the third quarter of 2006 versus
15.99% in the second quarter of 2006 and 15.60% in the year-earlier
quarter.
Puckett noted that quarterly loan growth was vigorous in the third
quarter, rising approximately 16% on an annualized basis and
underscoring the economic strength of the Company's key markets. At
the same time, credit quality remained strong, as non-performing loans
relative to total loans declined to 0.33% in the third quarter
compared with 0.34% in the second quarter of 2006 and 0.58% in the
same quarter last year. Net charge-offs in the third quarter totaled
0.20% of average total loans versus 0.17% in the second quarter of
2006 and 0.29% in the year-earlier period.
Net interest margin increased three basis points to 4.83% in the
third quarter of 2006 versus the second quarter of 2006 and was 29
basis points ahead of net interest margin in the year-earlier quarter.
Improving margins, achieved against generally challenging competitive
and interest rate environments, reflected the Company's ongoing
efforts to optimize its funding mix. Despite this progress, margin
compression remains a concern and management believes some pressure
may yet develop in the final quarter the year.
Greene County Bancshares also continues to focus on controlling
expenses in step with the expansion of its business. The Company's
efficiency ratio was 55.38% in the third quarter, demonstrating
continued improvement from 55.61% in the second quarter of 2006 and
58.28% in the third quarter of 2005.
Net interest income for the third quarter increased 27% to
$18,530,000 from $14,548,000 in the year-earlier period, driven by a
23% increase in average loans outstanding for the periods. The
quarter's provision for loan losses declined 3% to $1,661,000 from
$1,704,000 in the third quarter of last year, reflecting ongoing
improvements in asset quality. Net interest income increased 28% to
$53,489,000 for the year-to-date period in 2006 compared with
$41,947,000 in the same period last year. The Company's provision for
loan losses declined 10% to $3,969,000 in the first nine months of
2006 from $4,386,000 in the year-earlier period.
Non-interest income increased 37% in the third quarter to
$5,191,000 from $3,796,000 in the same quarter last year, while
non-interest income for the year-to-date period rose 43% to
$14,974,000 from $10,435,000 in the comparable 2005 period. These
advances reflected the ongoing positive impact of the Company's High
Performance Checking Account product, a key strategic initiative.
Third quarter 2006 "net" new accounts opened totaled 3,329 compared
with 2,289 during the same quarter last year, an increase of over 45%.
This momentum has helped drive non-interest income to 22% of total
revenue in 2006, up from 20% in the first nine months of 2005.
At September 30, 2006, the Company's total assets increased 7% to
$1,727,268,000 from $1,619,989,000 at December 31, 2005, and were 23%
ahead of the $1,405,580,000 in total assets reported as of September
30, 2005. Net loans increased 8% to $1,493,878,000 at
September 30, 2006, from $1,378,642,000 at December 31, 2005, and were
23% higher than net loans of $1,215,072,000 at September 30, 2005.
Deposits declined slightly to $1,242,810,000 at September 30, 2006,
from $1,295,879,000 at December 31, 2005, but were 10% ahead of
deposits of $1,134,864,000 as of September 30, 2005. Total
shareholders' equity increased 8% to $181,659,000 at
September 30, 2006, versus $168,021,000 at December 31, 2005, and was
13% higher than total shareholders' equity of $160,307,000 at
September 30, 2005.
Greeneville, Tennessee-based Greene County Bancshares, Inc., with
total assets of approximately $1.727 billion, is the holding company
for Greene County Bank. Greene County Bank, founded in 1890, now has
48 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 Montgomery County, Tennessee, as Clarksville Community 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 Nine Months Ended
--------------------------- -------------------
Sept. 30, June 30, Sept 30, Sept. 30, Sept. 30,
2006 2006 2005 2006 2005
--------- -------- -------- --------- ---------
Interest income $30,367 $28,489 $22,115 $85,623 $61,553
Interest expense 11,837 10,716 7,567 32,134 19,606
--------- -------- -------- --------- ---------
Net interest income 18,530 17,773 14,548 53,489 41,947
Provision for loan
losses 1,661 1,244 1,704 3,969 4,386
--------- -------- -------- --------- ---------
Net interest income
after provision for
loan losses 16,869 16,529 12,844 49,520 37,561
Non-interest income 5,191 5,028 3,796 14,974 10,435
Non-interest expense 13,136 12,679 10,691 38,521 31,388
--------- -------- -------- --------- ---------
Income before income
taxes 8,924 8,878 5,949 25,973 16,608
Income taxes 3,415 3,395 2,273 9,885 6,283
--------- -------- -------- --------- ---------
Net income $ 5,509 $ 5,483 $ 3,676 $16,088 $10,325
========= ======== ======== ========= =========
Comprehensive income $ 5,672 $ 5,498 $ 3,639 $16,259 $10,193
========= ======== ======== ========= =========
Earnings per share:
Basic $ 0.56 $ 0.56 $ 0.48 $ 1.65 $ 1.35
========= ======== ======== ========= =========
Diluted $ 0.56 $ 0.55 $ 0.47 $ 1.63 $ 1.33
========= ======== ======== ========= =========
Weighted average
shares:
Basic 9,790 9,786 7,711 9,782 7,671
========= ======== ======== ========= =========
Diluted 9,900 9,898 7,805 9,893 7,765
========= ======== ======== ========= =========
Dividends declared per
share $ 0.12 $ 0.12 $ 0.12 $ 0.36 $ 0.36
========= ======== ======== ========= =========
Sept. 30, Dec. 31, Sept. 30,
2006 2005 2005
----------- ----------- -----------
Total assets $1,727,268 $1,619,989 $1,405,580
Cash and cash equivalents 41,474 46,136 35,464
Investment securities 52,796 58,736 63,565
Loans, net of unearned interest 1,493,878 1,378,642 1,215,072
Allowance for loan losses 21,616 19,739 17,640
Deposits 1,242,810 1,295,879 1,134,864
Shareholders' equity 181,659 168,021 160,307
Tangible shareholders' equity (1) 142,848 128,399 137,176
Book value per share 18.54 17.20 16.90
Tangible book value per share (1) 14.58 13.15 14.46
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Balance Sheets
September 30, 2006, December 31, 2005 and September 30, 2005
(Dollars in thousands except share and per share data)
(Unaudited) (Unaudited)
September 30, December 31, September 30,
2006 2005 (1) 2005
-------------- ------------- --------------
ASSETS
- --------------------------
Cash and due from banks $ 41,474 $ 46,136 $ 35,464
Federal funds sold & other 28,004 28,387 10,857
Securities available-for-
sale ("AFS") 43,142 48,868 53,778
Securities held-to-
maturity (with a market
value of $2,674, $3,335
and $3,394 on September
30, 2006, December 31,
2005 and September 30,
2005) 2,690 3,379 3,380
FHLB, Bankers Bank and
other stock, at cost 6,964 6,489 6,407
Loans held for sale 2,195 2,686 4,260
Loans, net of unearned
interest 1,493,878 1,378,642 1,215,072
Allowance for loan losses (21,616) (19,739) (17,640)
Bank premises and
equipment, net of
accumulated depreciation 54,125 49,985 36,311
Goodwill and other
intangible assets 38,811 39,622 23,131
Other assets 37,601 35,534 34,560
-------------- ------------- --------------
Total Assets $ 1,727,268 $ 1,619,989 $ 1,405,580
============== ============= ==============
LIABILITIES AND
SHAREHOLDERS' EQUITY
- --------------------------
Deposits $ 1,242,810 $ 1,295,879 $ 1,134,864
Federal funds purchased 75,000 - -
Repurchase agreements 22,601 17,498 11,393
FHLB advances and notes
payable 173,058 105,146 70,240
Subordinated debentures 13,403 13,403 13,403
Accrued interest payable
and other liabilities 18,737 20,042 15,373
-------------- ------------- --------------
Total Liabilities 1,545,609 1,451,968 1,245,273
-------------- ------------- --------------
SHAREHOLDERS' EQUITY
- --------------------------
Common Stock: $2 par
value, 15,000,000 shares
authorized; 9,796,349,
9,766,336 and 9,485,949
shares outstanding 19,593 19,533 18,972
Paid in Capital 71,542 70,700 64,634
Retained Earnings 90,723 78,158 76,860
Accumulated Other
Comprehensive Income
(Loss) (199) (370) (159)
-------------- ------------- --------------
Total Shareholders'
Equity 181,659 168,021 160,307
-------------- ------------- --------------
Total Liabilities &
Shareholders' Equity $ 1,727,268 $ 1,619,989 $ 1,405,580
============== ============= ==============
(1) Derived from Audited Consolidated Financial Statements.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended September 30, 2006, June 30, 2006 and September 30,
2005 and Nine Months Ended September 30, 2006 and 2005
(Unaudited)
(Dollars in thousands except share and per share data)
Three Months Ended
----------------------------------------
September 30, June 30, September 30,
2006 2006 2005
-------------- ----------- --------------
Interest Income:
- -----------------------------
Interest and Fees on Loans $ 29,600 $ 27,781 $ 21,335
Interest on Investment
Securities 752 649 626
Interest on Federal Funds
Sold and Interest-earning
Deposits 15 59 154
-------------- ----------- --------------
Total Interest Income 30,367 28,489 22,115
-------------- ----------- --------------
Interest Expense:
- -----------------------------
Interest on Deposits 8,828 8,647 6,285
Interest on Borrowings 3,009 2,069 1,282
-------------- ----------- --------------
Total Interest Expense 11,837 10,716 7,567
-------------- ----------- --------------
Net Interest Income 18,530 17,773 14,548
Provision for Loan Losses 1,661 1,244 1,704
-------------- ----------- --------------
Net Interest Income after
Provision for Loan
Losses 16,869 16,529 12,844
-------------- ----------- --------------
Noninterest Income:
- -----------------------------
Service Charges,
Commissions and Fees 4,125 4,001 3,159
Other Income 1,066 1,027 637
-------------- ----------- --------------
Total Noninterest Income 5,191 5,028 3,796
-------------- ----------- --------------
Noninterest Expense:
- -----------------------------
Salaries and Benefits 6,768 6,266 5,366
Occupancy and Furniture and
Equipment Expense 2,046 2,050 1,821
Other Expenses 4,322 4,363 3,504
-------------- ----------- --------------
Total Noninterest Expense 13,136 12,679 10,691
-------------- ----------- --------------
Income Before Income
Taxes 8,924 8,878 5,949
Income Taxes 3,415 3,395 2,273
-------------- ----------- --------------
Net Income $ 5,509 $ 5,483 $ 3,676
============== =========== ==============
Comprehensive Income $ 5,672 $ 5,498 $ 3,639
============== =========== ==============
Per Share of Common Stock:
- -----------------------------
Basic Earnings $0.56 $0.56 $0.48
============== =========== ==============
Diluted Earnings $0.56 $0.55 $0.47
============== =========== ==============
Dividends $0.12 $0.12 $0.12
============== =========== ==============
Weighted Average Shares
Outstanding:
- -----------------------------
Basic 9,790,058 9,785,936 7,710,871
============== =========== ==============
Diluted 9,900,396 9,897,987 7,805,458
============== =========== ==============
Nine Months Ended
----------------------------
September 30, September 30,
2006 2005
-------------- --------------
Interest Income:
- -----------------------------
Interest and Fees on Loans $ 83,481 $ 59,265
Interest on Investment
Securities 2,032 1,691
Interest on Federal Funds
Sold and Interest-earning
Deposits 110 597
-------------- --------------
Total Interest Income 85,623 61,553
-------------- --------------
Interest Expense:
- -----------------------------
Interest on Deposits 25,517 16,048
Interest on Borrowings 6,617 3,558
-------------- --------------
Total Interest Expense 32,134 19,606
-------------- --------------
Net Interest Income 53,489 41,947
Provision for Loan Losses 3,969 4,386
-------------- --------------
Net Interest Income after
Provision for Loan
Losses 49,520 37,561
-------------- --------------
Noninterest Income:
- -----------------------------
Service Charges,
Commissions and Fees 11,357 8,137
Other Income 3,617 2,298
-------------- --------------
Total Noninterest Income 14,974 10,435
-------------- --------------
Noninterest Expense:
- -----------------------------
Salaries and Benefits 19,425 15,710
Occupancy and Furniture and
Equipment Expense 6,155 5,334
Other Expenses 12,941 10,344
-------------- --------------
Total Noninterest Expense 38,521 31,388
-------------- --------------
Income Before Income
Taxes 25,973 16,608
Income Taxes 9,885 6,283
-------------- --------------
Net Income $ 16,088 $ 10,325
============== ==============
Comprehensive Income $ 16,259 $ 10,193
============== ==============
Per Share of Common Stock:
- -----------------------------
Basic Earnings $1.65 $1.35
============== ==============
Diluted Earnings $1.63 $1.33
============== ==============
Dividends $0.36 $0.36
============== ==============
Weighted Average Shares
Outstanding:
- -----------------------------
Basic 9,782,255 7,670,502
============== ==============
Diluted 9,893,417 7,765,343
============== ==============
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
September 30, December 31, %
2006 2005 Change
-------------- ------------- -------
Financial Condition Data:
- ------------------------------
Assets $ 1,727,268 $ 1,619,989 6.62%
Loans, net of unearned
interest 1,493,878 1,378,642 8.36%
Cash and investments 94,270 104,872 -10.11%
Federal funds sold 28,004 28,387 -1.35%
Deposits 1,242,810 1,295,879 -4.10%
Federal funds purchased 75,000 - -
FHLB advances and notes
payable 173,058 105,146 64.59%
Subordinated debentures 13,403 13,403 0.00%
Federal funds purchased and
repurchase agreements 22,601 17,498 29.16%
Shareholders' equity 181,659 168,021 8.12%
Tangible shareholders'
equity (1) 142,848 128,399 11.25%
Ratios:
- ------------------------------
Book value per share $18.54 $17.20 7.79%
Tangible book value per
share (1) $14.58 $13.15 10.87%
Average equity to average
assets 10.78% 9.20% 17.17%
Dividend payout ratio 21.90% 37.38%(2) -41.41%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
(2) Includes special dividend of $.14 per share paid in December 2005.
Three Months Ended
September 30,
----------------------
2006 2005 % Change
----------- ----------- ---------
Operating Data:
- -------------------------------------
Total Interest Income $ 30,367 $ 22,115 37.31%
Total Interest Expense 11,837 7,567 56.43%
----------- ----------- ---------
Net Interest Income 18,530 14,548 27.37%
Provision for Loan Losses 1,661 1,704 -2.52%
----------- ----------- ---------
Net Interest Income After
Provision for Loan Losses 16,869 12,844 31.34%
Non-Interest Income 5,191 3,796 36.75%
Non-Interest Expense 13,136 10,691 22.87%
----------- ----------- ---------
Income Before Income Taxes 8,924 5,949 50.01%
----------- ----------- ---------
Income Tax Expense 3,415 2,273 50.24%
---------- ---------- ---------
Net Income $ 5,509 $ 3,676 49.86%
=========== =========== =========
Comprehensive Income $ 5,672 $ 3,639 55.87%
=========== =========== =========
Per Share of Common Stock:
- -------------------------------------
Basic Earnings $0.56 $0.48 16.67%
=========== =========== =========
Diluted Earnings $0.56 $0.47 19.15%
=========== =========== =========
Dividends $0.12 $0.12 0.00%
=========== =========== =========
Weighted Average Shares Outstanding:
- -------------------------------------
Basic 9,790,058 7,710,871
=========== ===========
Diluted 9,900,396 7,805,458
=========== ===========
Nine Months Ended
September 30,
----------------------
2006 2005 % Change
----------- ----------- ---------
Operating Data:
- ------------------------------------
Total Interest Income $ 85,623 $ 61,553 39.10%
Total Interest Expense 32,134 19,606 63.90%
----------- ----------- ---------
Net Interest Income 53,489 41,947 27.52%
Provision for Loan Losses 3,969 4,386 -9.51%
----------- ----------- ---------
Net Interest Income After
Provision for Loan Losses 49,520 37,561 31.84%
Non-Interest Income 14,974 10,435 43.50%
Non-Interest Expense 38,521 31,388 22.73%
----------- ----------- ---------
Income Before Income Taxes 25,973 16,608 56.39%
----------- ----------- ---------
Income Tax Expense 9,885 6,283 57.33%
----------- ----------- ---------
Net Income $ 16,088 $ 10,325 55.82%
=========== =========== =========
Comprehensive Income $ 16,259 $ 10,193 59.51%
=========== =========== =========
Per Share of Common Stock:
- ------------------------------------
Basic Earnings $1.65 $1.35 22.22%
=========== =========== =========
Diluted Earnings $1.63 $1.33 22.56%
=========== =========== =========
Dividends $0.36 $0.36 0.00%
=========== =========== =========
Weighted Average Shares Outstanding:
- ------------------------------------
Basic 9,782,255 7,670,502
=========== ===========
Diluted 9,893,417 7,765,343
=========== ===========
Three Months Ended Nine Months
------------------------------------ Ended
September 30,
September 30, June 30, September 30, -------------
2006 2006 2005 2006 2005
------------- -------- ------------- ------ ------
Key Financial
Ratios:
- -------------------
Return on Average
Assets 1.32% 1.34% 1.07% 1.31% 1.04%
Return on Average
Shareholders'
Equity 12.22% 12.43% 12.52% 12.17% 12.08%
Return on Average
Tangible
Shareholders'
Equity (1) 15.59% 15.99% 15.60% 15.66% 15.21%
Interest Rate
Spread 4.35% 4.35% 4.23% 4.37% 4.30%
Net Interest
Margin 4.83% 4.80% 4.54% 4.81% 4.58%
Efficiency Ratio 55.38% 55.61% 58.28% 56.27% 59.92%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
September 30, June 30, September 30,
2006 2006 2005
------------- -------- -------------
Asset Quality Ratios:
- --------------------------------
Nonperforming Loans as a
Percentage of Total Loans, net
of Unearned Income 0.33% 0.34% 0.58%
Nonperforming Assets as a
Percentage of Total Assets 0.42% 0.47% 0.75%
Allowance for Loan Losses as a
Percentage of Total Loans, net
of Unearned Income 1.45% 1.45% 1.45%
Allowance for Loan Losses as a
Percentage of Nonperforming
Assets 295.22% 263.55% 166.27%
Net Charge-Offs to Average
Total Loans, Net of Unearned
Income 0.20% 0.17% 0.29%
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
September 30, 2006
(UNAUDITED)
Nonperforming Assets and Net Charge-offs
- ----------------------------------------
As of and for the three months ended
September 30, 2006 Bank Other Total
- -------------------------------------- -------- -------- -------------
Loans past due 90 days and still
accruing $ 51 $ 14 $ 65
Nonaccrual loans 4,304 519 4,823
Other real estate owned and
repossessed assets 2,207 227 2,434
-------- -------- -------------
Total nonperforming assets $ 6,562 $ 760 $ 7,322
======== ======== =============
YTD annualized net charge-offs $ 1,931 $ 859 $ 2,789
======== ======== =============
As of and for the three months ended
September 30, 2005 Bank Other Total
- -------------------------------------- -------- -------- -------------
Loans past due 90 days and still
accruing $ 1,077 $ - $ 1,077
Nonaccrual loans 5,506 517 6,023
Other real estate owned and
repossessed assets 3,247 262 3,509
-------- -------- -------------
Total nonperforming assets $ 9,830 $ 779 $ 10,609
======== ======== =============
YTD annualized net charge-offs $ 1,959 $ 1,331 $ 3,289
======== ======== =============
As of and for the year ended December
31, 2005 Bank Other Total
- -------------------------------------- -------- -------- -------------
Loans past due 90 days and still
accruing $ 809 $ - $ 809
Nonaccrual loans 5,393 522 5,915
Other real estate owned and
repossessed assets 3,396 347 3,743
-------- -------- -------------
Total nonperforming assets $ 9,598 $ 869 $ 10,467
======== ======== =============
Net charge-offs $ 2,490 $ 1,324 $ 3,814
======== ======== =============
Asset Quality Ratios
- --------------------------------------
As of and for the three months ended
September 30, 2006 Bank Other Consolidated
- -------------------------------------- -------- ------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.29% 1.63% 0.33%
Nonperforming assets as a percentage
of total assets 0.38% 2.02% 0.42%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.28% 7.92% 1.45%
Allowance for loan losses as a
percentage of nonperforming assets 289.90% 341.18% 295.22%
YTD annualized net charge-offs to
average total loans, net of
unearned income 0.14% 2.72% 0.20%
As of and for the three months ended
September 30, 2005 Bank Other Consolidated
- -------------------------------------- -------- ------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.54% 1.69% 0.58%
Nonperforming assets as a percentage
of total assets 0.70% 1.85% 0.75%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.26% 7.92% 1.45%
Allowance for loan losses as a
percentage of nonperforming assets 154.79% 311.17% 166.27%
YTD annualized net charge-offs to
average total loans, net of
unearned income 0.17% 4.22% 0.29%
As of and for the year ended December
31, 2005 Bank Other Consolidated
- -------------------------------------- -------- ------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.45% 1.68% 0.49%
Nonperforming assets as a percentage
of total assets 0.59% 2.37% 0.65%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.26% 7.89% 1.43%
Allowance for loan losses as a
percentage of nonperforming assets 180.06% 282.74% 188.58%
Net charge-offs to average total
loans, net of unearned income 0.21% 4.22% 0.32%
GREENE COUNTY BANCSHARES, INC.
Condensed Average Balances, Interest Rates and Yields
September 30, 2006
Three Months Ended
September 30,
----------------------------
2006
----------------------------
Average Average
Balance Interest Rate
---------- -------- --------
Interest-earning assets:
- -----------------------------------------
Loans 1,464,356 29,600 8.02%
Investment securities 57,226 752 5.21%
Other short-term investments 1,168 15 5.10%
---------- -------- --------
Total interest-earning assets 1,522,750 30,367 7.91%
---------- -------- --------
Non-interest earning assets 148,418
----------
Total assets 1,671,168
==========
Interest-bearing liabilities:
- -----------------------------------------
Deposits:
- -----------------------------------------
Now accounts, money market and
savings 467,112 2,447 2.08%
Time deposits 630,258 6,381 4.02%
---------- -------- --------
Total interest bearing-deposits 1,097,370 8,828 3.19%
---------- -------- --------
Securities sold under repurchase and
short-term borrowings 42,775 531 4.93%
Notes payable 178,786 2,478 5.50%
---------- -------- --------
Total interest-bearing liabilities 1,318,931 11,837 3.56%
---------- -------- --------
Non-Interest Bearing Liabilities:
- -----------------------------------------
Demand Deposits 152,035
Other Liabilities 19,868
----------
Total Non-Interest Bearing Liabilities 171,903
----------
Total liabilities 1,490,834
----------
Shareholders' equity 180,334
Total liabilities & shareholders' equity 1,671,168
==========
Net interest income 18,530
========
Interest rate spread 4.35%
========
Net yield on interest-earning assets (net
interest margin) 4.83%
========
Three Months Ended
September 30,
-----------------------------
2005
---------------------------
Average Average
Balance Interest Rate
---------- -------- -------
Interest-earning assets:
- -----------------------------------------
Loans 1,190,852 21,335 7.11%
Investment securities 62,860 626 3.95%
Other short-term investments 18,123 154 3.37%
---------- -------- -------
Total interest-earning assets 1,271,835 22,115 6.90%
---------- -------- -------
Non-interest earning assets 104,047
----------
Total assets 1,375,882
==========
Interest-bearing liabilities:
- -----------------------------------------
Deposits:
- -----------------------------------------
Now accounts, money market and
savings 406,431 1,449 1.41%
Time deposits 611,800 4,836 3.14%
---------- -------- -------
Total interest bearing-deposits 1,018,231 6,285 2.45%
---------- -------- -------
Securities sold under repurchase and
short-term borrowings 13,551 98 2.87%
Notes payable 91,493 1,184 5.13%
---------- -------- -------
Total interest-bearing liabilities 1,123,275 7,567 2.67%
---------- -------- -------
Non-Interest Bearing Liabilities:
- -----------------------------------------
Demand Deposits 120,460
Other Liabilities 14,686
----------
Total Non-Interest Bearing Liabilities 135,146
----------
Total liabilities 1,258,421
----------
Shareholders' equity 117,461
Total liabilities & shareholders' equity 1,375,882
==========
Net interest income 14,548
========
Interest rate spread 4.23%
=======
Net yield on interest-earning assets (net
interest margin) 4.54%
=======
Nine Months Ended
September 30,
----------------------------
2006
----------------------------
Average Average
Balance Interest Rate
---------- -------- --------
Interest-earning assets:
- -----------------------------------------
Loans 1,428,177 83,481 7.82%
Investment securities 56,084 2,032 4.84%
Other short-term investments 2,998 110 4.91%
---------- -------- --------
Total interest-earning assets 1,487,259 85,623 7.70%
---------- -------- --------
Non-interest earning assets 147,364
----------
Total assets 1,634,623
==========
Interest-bearing liabilities:
- -----------------------------------------
Deposits:
- -----------------------------------------
Now accounts, money market and
savings 497,576 7,703 2.07%
Time deposits 627,269 17,814 3.80%
---------- -------- --------
Total interest bearing-deposits 1,124,845 25,517 3.03%
---------- -------- --------
Securities sold under repurchase and
short-term borrowings 33,156 1,135 4.58%
Notes payable 134,820 5,482 5.44%
---------- -------- --------
Total interest-bearing liabilities 1,292,821 32,134 3.32%
---------- -------- --------
Non-Interest Bearing Liabilities:
- -----------------------------------------
Demand Deposits 147,049
Other Liabilities 18,535
----------
Total Non-Interest Bearing Liabilities 165,584
----------
Total liabilities 1,458,405
----------
Shareholders' equity 176,218
Total liabilities & shareholders' equity 1,634,623
==========
Net interest income 53,489
========
Interest rate spread 4.37%
========
Net yield on interest-earning assets (net
interest margin) 4.81%
========
Nine Months Ended
September 30,
-----------------------------
2005
---------------------------
Average Average
Balance Interest Rate
---------- -------- -------
Interest-earning assets:
- -----------------------------------------
Loans 1,137,400 59,265 6.97%
Investment securities 58,229 1,691 3.88%
Other short-term investments 28,446 597 2.81%
---------- -------- -------
Total interest-earning assets 1,224,075 61,553 6.72%
---------- -------- -------
Non-interest earning assets 103,577
----------
Total assets 1,327,652
==========
Interest-bearing liabilities:
- -----------------------------------------
Deposits:
- -----------------------------------------
Now accounts, money market and
savings 399,016 3,476 1.16%
Time deposits 578,403 12,572 2.91%
---------- -------- -------
Total interest bearing-deposits 977,419 16,048 2.20%
---------- -------- -------
Securities sold under repurchase and
short-term borrowings 15,646 282 2.41%
Notes payable 88,342 3,276 4.96%
---------- -------- -------
Total interest-bearing liabilities 1,081,407 19,606 2.42%
---------- -------- -------
Non-Interest Bearing Liabilities:
- -----------------------------------------
Demand Deposits 117,930
Other Liabilities 14,387
----------
Total Non-Interest Bearing Liabilities 132,317
----------
Total liabilities 1,213,724
----------
Shareholders' equity 113,928
Total liabilities & shareholders' equity 1,327,652
==========
Net interest income 41,947
========
Interest rate spread 4.30%
=======
Net yield on interest-earning assets (net
interest margin) 4.58%
=======
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
September 30, 2006
(UNAUDITED)
September 30, 2006 December 31, 2005
------------------- -------------------
Loans Balance % Balance % % Change
- ------------------- ----------- ------- ----------- ------- ---------
Commercial $ 260,709 17.32% $ 245,285 17.67% 6.29%
Commercial real
estate 862,526 57.31% 729,254 52.52% 18.28%
Residential real
estate 287,529 19.11% 319,797 23.03% -10.09%
Consumer 89,389 5.94% 90,682 6.53% -1.43%
Other 4,757 0.32% 3,476 0.25% 36.85%
---------- ------- ---------- ------- ---------
1,504,910 100.00% 1,388,494 100.00% 8.38%
======= ======= =========
Less: Unearned
interest income (11,032) (9,852)
----------- -----------
Total $1,493,878 $1,378,642
=========== ===========
Loan Balances by Banking Units and
Operating Subsidiaries
- ---------------------------------------
September 30, 2006 December 31, 2005
------------------ ------------------
% to % to
Loan Total Loan Total
Balance Loans Balance Loans % Change
----------- ------- ----------- ------- ---------
Greene County Bank $ 110,945 7.43% $ 113,213 8.21% -2.00%
American Fidelity
Bank 512,411 34.29% 447,261 32.46% 14.57%
Bank of Athens 48,912 3.27% 46,744 3.39% 4.64%
Bank of Bulls Gap 5,080 0.34% 5,273 0.38% -3.66%
Bank of Niota 8,524 0.57% 10,478 0.76% -18.65%
Clarksville
Community Bank 100,785 6.75% 107,660 7.81% -6.39%
Cocke County Bank 6,239 0.42% 6,021 0.44% 3.62%
Community Bank of
Loudon County 27,451 1.84% 23,362 1.69% 17.50%
Community Trust
Bank 8,544 0.57% 9,937 0.72% -14.02%
First Bristol Bank 61,089 4.09% 57,661 4.18% 5.95%
First Independent
Bank 59,832 4.01% 65,391 4.74% -8.50%
Hamblen County Bank 48,142 3.22% 48,944 3.55% -1.64%
Hawkins County Bank 35,219 2.36% 31,887 2.31% 10.45%
Bank of Lawrence
County 22,203 1.49% 24,222 1.76% -8.34%
Middle Tennessee
Bank and Trust 116,622 7.81% 87,351 6.34% 33.51%
Rutherford Bank and
Trust 92,473 6.19% 83,590 6.06% 10.63%
Sullivan County
Bank 13,167 0.88% 16,865 1.22% -21.93%
Washington County
Bank 183,486 12.28% 161,643 11.72% 13.51%
GCB Acceptance
Corporation 12,697 0.85% 12,140 0.88% 4.59%
Superior Financial
Services, Inc. 20,057 1.34% 18,999 1.38% 5.57%
----------- ------- ----------- ------- ---------
Totals $1,493,878 100.00% $1,378,642 100.00% 8.36%
=========== ======= =========== ======= =========
September 30, 2006 December 31, 2005
------------------- -------------------
Deposits Balance % Balance % % Change
- ------------------- ----------- ------- ----------- ------- ---------
Non-interest
bearing demand $ 155,897 12.23% $ 144,216 11.13% 8.10%
Interest bearing
demand 245,279 21.30% 268,714 20.74% -8.72%
Money market and
savings 211,710 16.97% 245,740 18.96% -13.85%
Retail time 404,400 32.66% 425,506 32.83% -4.96%
Jumbo time 225,524 16.84% 211,703 16.34% 6.53%
----------- ------- ----------- ------- ---------
Total $1,242,810 100.00% $1,295,879 100.00% -4.10%
=========== ======= =========== ======= =========
Deposit Balances by Banking Units and
Operating Subsidiaries
- ---------------------------------------
September 30, 2006 December 31, 2005
------------------- -------------------
Balance % Balance % % Change
----------- ------- ----------- ------- ---------
Greene County Bank $ 334,206 26.87% $ 322,396 24.90% 3.66%
American Fidelity
Bank 168,246 13.54% 184,874 14.27% -8.99%
Bank of Athens 30,310 2.44% 26,280 2.03% 15.33%
Bank of Bulls Gap 17,085 1.37% 16,181 1.25% 5.59%
Bank of Niota 16,005 1.29% 16,237 1.25% -1.43%
Clarksville
Community Bank 148,433 11.94% 169,032 13.04% -12.19%
Cocke County Bank 29,568 2.38% 28,314 2.18% 4.43%
Community Bank of
Loudon County 24,837 2.00% 24,507 1.89% 1.35%
Community Trust
Bank 4,472 0.36% 6,539 0.50% -31.61%
First Bristol Bank 27,969 2.25% 47,351 3.65% -40.93%
First Independent
Bank 90,803 7.31% 101,071 7.80% -10.16%
Hamblen County Bank 50,907 4.10% 52,998 4.09% -3.95%
Hawkins County Bank 42,581 3.43% 47,484 3.66% -10.33%
Bank of Lawrence
County 69,559 5.60% 70,519 5.44% -1.36%
Middle Tennessee Bank
and Trust 51,799 4.17% 38,919 3.00% 33.09%
Rutherford Bank and
Trust 50,804 4.09% 51,903 4.01% -2.12%
Sullivan County
Bank 12,328 0.99% 13,671 1.05% -9.82%
Washington County
Bank 72,898 5.87% 77,603 5.99% -6.06%
GCB Acceptance
Corporation - 0.00% - 0.00% -
Superior Financial
Services, Inc. - 0.00% - 0.00% -
----------- ------- ----------- ------- ---------
$1,242,810 100.00% $1,295,879 100.00% -4.10%
=========== ======= =========== ======= =========
CONTACT: Greene County Bancshares, Inc.
Senior Vice President and Chief Financial Officer
James E. Adams, 423-278-3050