Exhibit 99.1
Greene County Banchares Reports Fourth Quarter Diluted EPS up 33%
2006 Marks Sixth Consecutive Year of Record Earnings
GREENEVILLE, Tenn.--(BUSINESS WIRE)--January 22, 2007--Greene
County Bancshares, Inc. (NASDAQ: GCBS) today reported a strong finish
to 2006, with earnings per diluted share up 33% for the fourth
quarter. Driven by higher net interest income and significant growth
in non-interest income - and underpinned by improving credit quality
trends - the Company's fourth quarter results enabled Greene County
Bancshares to post its sixth consecutive year of record earnings.
Net income for the fourth quarter of 2006 increased to $5,174,000,
up 35% from $3,838,000 in the fourth quarter of 2005. On a diluted per
share basis, earnings totaled $0.52 for the fourth quarter, an
increase of 33% from $0.39 reported for the fourth quarter of 2005.
For the full year 2006, net income reached $21,262,000 versus
$14,163,000 for 2005, an increase of over 50%. On a diluted per share
basis, earnings for 2006 totaled $2.14, rising 25% from $1.71 in the
same period a year ago.
Commenting on the Company's announcement, Stan Puckett, Chairman
and Chief Executive Officer, said, "As our reported results indicate,
our company made significant progress during 2006 in terms of new
business development and ongoing market penetration across virtually
all of our markets. Programs to increase loan volume and build our
deposit base have been successful, translating into significant
organic balance sheet growth during the year. This, coupled with
improved net interest margins and steady improvements in our asset
quality measures, provided continued momentum for revenue and earnings
growth in 2006 - easily the most growth we have witnessed in the last
six years of record results."
Return on Average Assets (ROA) improved notably compared with the
year-earlier period. The Company's ROA was 1.20% in the fourth quarter
of 2006 compared with 0.98% in the year-earlier quarter. Return on
Average Equity (ROE) increased to 11.16% in the fourth quarter of 2006
from 9.10% in the fourth quarter of 2005. Return on Average Tangible
Equity (average shareholders' equity less goodwill and intangible
assets) (ROTE) was 14.10% in the fourth quarter of 2006 versus 11.65%
in the year-earlier quarter. For the year, ROA increased to 1.28% from
1.02% for 2005, while ROE increased to 11.91% from 11.09% for 2005.
ROTE for 2006 was 15.25% versus 14.04% for 2005.
Puckett noted that quarterly loan growth remained healthy
throughout 2006, with the Company's loan portfolio rising
approximately 12% over 2005, 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
0.23% at year's end, down from 0.49% at the end of 2005. Net
charge-offs for 2006 were 0.20% of average total loans versus 0.32% in
2005.
The net interest margin was 4.66% for the current quarter,
dropping just one basis point from net interest margin of 4.67% in the
year-earlier period. For the full year, net interest margin increased
16 basis points to 4.77% from 4.61% in 2005. Improved margins for the
full year 2006, achieved against challenging competitive and interest
rate environments, reflected the Company's ongoing efforts to optimize
its funding mix. Despite this progress, some margin compression did
occur during the fourth quarter as the yield curve continued to
invert. Puckett commented that the Company was able to overcome the
impact of this challenging interest rate environment through continued
initiatives to increase non-interest income associated with its High
Performance Checking product.
Greene County Bancshares continued to focus on controlling
expenses as it expanded its business and market reach. The Company's
efficiency ratio was 58.73% in the fourth quarter, an improvement from
61.21% in the fourth quarter of 2005. For the full year, the Company's
efficiency ratio was 56.91% versus 60.29% for 2005.
Net interest income for the fourth quarter increased 10% to
$18,468,000 from $16,839,000 in the year-earlier period, driven by a
12% increase in average loans outstanding between the periods. The
quarter's provision for loan losses was $1,538,000, down from
$1,979,000 in the fourth quarter of last year and reflecting ongoing
improvements in asset quality. Net interest income for the year
increased 22% to $71,957,000 compared with $58,786,000 for 2005,
bolstered by a 16% increase in organic average loans outstanding,
excluding the Clarksville branch acquisition. The Company's provision
for loan losses declined 13% to $5,507,000 in 2006 from $6,365,000 in
the prior year.
Non-interest income increased 34% in the fourth quarter to
$5,804,000 from $4,321,000 in the same quarter last year, while
non-interest income for 2006 rose 41% to $20,778,000 from $14,756,000
in 2005. These advances reflected the ongoing positive impact of the
Company's High Performance Checking Account product, a key strategic
initiative. Fourth quarter "net" new checking accounts opened totaled
3,486 compared with 1,830 during the same quarter last year, an
increase of over 90%. This momentum has helped drive non-interest
income to 22% of total revenue in 2006, up from 20% in 2005.
Non-interest expenses totaled $14,255,000 in the fourth quarter,
up $1,303,000 or 10% over the same period a year ago and driven by
additional formula-based incentive accruals and OREO-related expenses.
For the full year 2006, non-interest expenses totaled $52,776,000
compared with $44,340,000 in 2005. Current year's expenses include the
normal incremental operating expenses of $2,643,000 associated with
the Company's purchase of five Clarksville branches in October 2005.
Puckett concluded, "Although we believe that 2007 will be a
challenging year, we anticipate that earnings will continue to
increase as we strengthen our position within our existing markets and
further expand into adjacent markets."
At December 31, 2006, the Company's total assets increased 9% to
$1,772,654,000 from $1,619,989,000 at December 31, 2005. Net loans
increased 12% to $1,539,629,000 at December 31, 2006, from
$1,378,642,000 at December 31, 2005. Deposits rose 3% to
$1,332,505,000 at December 31, 2006, from $1,295,879,000 at
December 31, 2005. Total shareholders' equity increased 10% to
$184,471,000 at December 31, 2006, versus $168,021,000 at
December 31, 2005.
Greeneville, Tennessee-based Greene County Bancshares, Inc., with
total assets of approximately $1.8 billion, is the holding company for
Greene County Bank. Greene County Bank, founded in 1890, has 49
branches throughout East and Middle Tennessee, and one branch each in
Bristol, Virginia, and Hot Springs, North Carolina, and a wealth
management office in Lebanon, Tennessee. 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 Year Ended
------------------------------ -----------------------
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2006 2006 2005 2006 2005
-------- --------- ----------- ----------- -----------
Interest income $31,734 $30,367 $25,638 $117,357 $87,191
Interest
expense 13,266 11,837 8,799 45,400 28,405
-------- --------- ----------- ----------- -----------
Net interest
income 18,468 18,530 16,839 71,957 58,786
Provision for
loan losses 1,538 1,661 1,979 5,507 6,365
-------- --------- ----------- ----------- -----------
Net interest
income after
provision for
loan losses 16,930 16,869 14,860 66,450 52,421
Non-interest
income 5,804 5,191 4,321 20,778 14,756
Non-interest
expense 14,255 13,136 12,952 52,776 44,340
-------- --------- ----------- ----------- -----------
Income before
income taxes 8,479 8,924 6,229 34,452 22,837
Income taxes 3,305 3,415 2,391 13,190 8,674
-------- --------- ----------- ----------- -----------
Net income $5,174 $5,509 $3,838 $21,262 $14,163
======== ========= =========== =========== ===========
Comprehensive
income $5,244 $5,672 $3,627 $21,503 $13,820
======== ========= =========== =========== ===========
Earnings per
share:
Basic $0.53 $0.56 $0.40 $2.17 $1.73
======== ========= =========== =========== ===========
Diluted $0.52 $0.56 $0.39 $2.14 $1.71
======== ========= =========== =========== ===========
Weighted
average
shares:
Basic 9,805 9,790 9,710 9,788 8,184
======== ========= =========== =========== ===========
Diluted 9,942 9,900 9,800 9,933 8,276
======== ========= =========== =========== ===========
Dividends
declared per
share $0.28 $0.12 $0.26 $0.64 $0.62
======== ========= =========== =========== ===========
Dec. 31, Sept. 30, Dec. 31,
2006 2006 2005
----------- ----------- -----------
Total assets $1,772,654 $1,727,268 $1,619,989
Cash and cash
equivalents 70,640 41,474 74,523
Investment
securities 47,340 52,796 58,736
Loans, net of
unearned
interest 1,539,629 1,493,878 1,378,642
Allowance for
loan losses 22,302 21,616 19,739
Deposits 1,332,505 1,242,810 1,295,879
Shareholders'
equity 184,471 181,659 168,021
Tangible
shareholders'
equity (1) 145,931 142,848 128,399
Book value per
share 18.80 18.54 17.20
Tangible book
value per
share (1) 14.87 14.58 13.15
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Balance Sheets
December 31, 2006 and December 31, 2005
(Dollars in thousands except share and per share data)
(Unaudited)
December 31, December 31,
2006 2005 (1)
------------ ------------
ASSETS
- ------------------------------------------
Cash and due from banks $ 44,657 $ 46,136
Federal funds sold & other 25,983 28,387
Securities available-for-sale ("AFS") 37,740 48,868
Securities held-to-maturity (with a market
value of $2,544 and $3,335 on December
31, 2006 and December 31, 2005) 2,545 3,379
FHLB, Bankers Bank and other stock, at
cost 7,055 6,489
Loans held for sale 1,772 2,686
Loans, net of unearned interest 1,539,629 1,378,642
Allowance for loan losses (22,302) (19,739)
Bank premises and equipment, net of
accumulated depreciation 57,258 49,985
Goodwill and other intangible assets 38,540 39,622
Other assets 39,777 35,534
------------ ------------
Total Assets $ 1,772,654 $ 1,619,989
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------------
Deposits $ 1,332,505 $ 1,295,879
Federal funds purchased 20,000 -
Repurchase agreements 22,165 17,498
FHLB advances and notes payable 177,571 105,146
Subordinated debentures 13,403 13,403
Accrued interest payable and other
liabilities 22,539 20,042
------------ ------------
Total Liabilities 1,588,183 1,451,968
------------ ------------
SHAREHOLDERS' EQUITY
- ------------------------------------------
Common Stock: $2 par value, 15,000,000
shares authorized; 9,810,867 and
9,766,336 shares outstanding 19,622 19,533
Paid in Capital 71,828 70,700
Retained Earnings 93,150 78,158
Accumulated Other Comprehensive Income
(Loss) (129) (370)
------------ ------------
Total Shareholders' Equity 184,471 168,021
------------ ------------
Total Liabilities & Shareholders'
Equity $ 1,772,654 $ 1,619,989
============ ============
(1) Derived from Audited Consolidated Financial Statements.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended December 31, 2006, September 30, 2006 and December
31, 2006 and Twelve Months Ended December 31, 2006 and 2005
(Unaudited)
(Dollars in thousands except share and per share data)
Three Months Ended
-----------------------------------------
December 31, September 30, December 31,
2006 2006 2005
------------ ------------- ------------
Interest Income:
- ---------------------------
Interest and Fees on
Loans $ 31,012 $ 29,600 $ 24,809
Interest on Investment
Securities 694 752 649
Interest on Federal Funds
Sold and Interest-
earning Deposits 28 15 180
------------ ------------- ------------
Total Interest Income 31,734 30,367 25,638
------------ ------------- ------------
Interest Expense:
- ---------------------------
Interest on Deposits 10,573 8,828 7,433
Interest on Borrowings 2,693 3,009 1,366
------------ ------------- ------------
Total Interest Expense 13,266 11,837 8,799
------------ ------------- ------------
Net Interest Income 18,468 18,530 16,839
Provision for Loan Losses 1,538 1,661 1,979
------------ ------------- ------------
Net Interest Income
after Provision for
Loan Losses 16,930 16,869 14,860
------------ ------------- ------------
Noninterest Income:
- ---------------------------
Service Charges,
Commissions and Fees 4,805 4,125 3,546
Other Income 999 1,066 775
------------ ------------- ------------
Total Noninterest Income 5,804 5,191 4,321
------------ ------------- ------------
Noninterest Expense:
- ---------------------------
Salaries and Benefits 6,883 6,768 6,475
Occupancy and Furniture
and Equipment Expense 2,084 2,046 1,939
Other Expenses 5,288 4,322 4,538
------------ ------------- ------------
Total Noninterest Expense 14,255 13,136 12,952
------------ ------------- ------------
Income Before Income
Taxes 8,479 8,924 6,229
Income Taxes 3,305 3,415 2,391
------------ ------------- ------------
Net Income $ 5,174 $ 5,509 $ 3,838
============ ============= ============
Comprehensive Income $ 5,244 $ 5,672 $ 3,627
============ ============= ============
Per Share of Common Stock:
- ---------------------------
Basic Earnings $0.53 $0.56 $0.40
============ ============= ============
Diluted Earnings $0.52 $0.56 $0.39
============ ============= ============
Dividends $0.28 $0.12 $0.26
============ ============= ============
Weighted Average Shares
Outstanding:
- ---------------------------
Basic 9,805,065 9,790,058 9,709,731
============ ============= ============
Diluted 9,942,078 9,900,396 9,799,609
============ ============= ============
Twelve Months Ended
--------------------------
December 31, December 31,
2006 2005
------------ ------------
Interest Income:
- ---------------------------
Interest and Fees on
Loans $ 114,493 $ 84,074
Interest on Investment
Securities 2,726 2,340
Interest on Federal Funds
Sold and Interest-
earning Deposits 138 777
------------ ------------
Total Interest Income 117,357 87,191
------------ ------------
Interest Expense:
- ---------------------------
Interest on Deposits 36,090 23,481
Interest on Borrowings 9,310 4,924
------------ ------------
Total Interest Expense 45,400 28,405
------------ ------------
Net Interest Income 71,957 58,786
Provision for Loan Losses 5,507 6,365
------------ ------------
Net Interest Income
after Provision for
Loan Losses 66,450 52,421
------------ ------------
Noninterest Income:
- ---------------------------
Service Charges,
Commissions and Fees 16,162 11,683
Other Income 4,616 3,073
------------ ------------
Total Noninterest Income 20,778 14,756
------------ ------------
Noninterest Expense:
- ---------------------------
Salaries and Benefits 26,308 22,185
Occupancy and Furniture
and Equipment Expense 8,239 7,273
Other Expenses 18,229 14,882
------------ ------------
Total Noninterest Expense 52,776 44,340
------------ ------------
Income Before Income
Taxes 34,452 22,837
Income Taxes 13,190 8,674
------------ ------------
Net Income $ 21,262 $ 14,163
============ ============
Comprehensive Income $ 21,503 $ 13,820
============ ============
Per Share of Common Stock:
- ---------------------------
Basic Earnings $2.17 $1.73
============ ============
Diluted Earnings $2.14 $1.71
============ ============
Dividends $0.64 $0.62
============ ============
Weighted Average Shares
Outstanding:
- ---------------------------
Basic 9,788,004 8,184,499
============ ============
Diluted 9,933,278 8,276,133
============ ============
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
December 31, December 31, %
2006 2005 Change
------------ ------------ -------
Financial Condition Data:
- ----------------------------
Assets $ 1,772,654 $ 1,619,989 9.42%
Loans, net of unearned
interest 1,539,629 1,378,642 11.68%
Cash and investments 91,997 104,872 -12.28%
Federal funds sold 25,983 28,387 -8.47%
Deposits 1,332,505 1,295,879 2.83%
Federal funds purchased 20,000 - -
FHLB advances and notes
payable 177,571 105,146 68.88%
Subordinated debentures 13,403 13,403 0.00%
Federal funds purchased
and repurchase agreements 22,165 17,498 26.67%
Shareholders' equity 184,471 168,021 9.79%
Tangible shareholders'
equity (1) 145,931 128,399 13.65%
Ratios:
- ----------------------------
Book value per share $18.80 $17.20 9.30%
Tangible book value per
share (1) $14.87 $13.15 13.08%
Average equity to
average assets 10.78% 9.20% 17.17%
Dividend payout ratio 29.91%(2) 36.26%(2) -17.52%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
(2) Includes special dividend of $.16 and $.14 per share paid in
December 2006 and 2005, respectively.
Three Months Ended
December 31,
----------------------
2006 2005 % Change
---------- ---------- ---------
Operating Data:
- ------------------------------------
Total Interest Income $ 31,734 $ 25,638 23.78%
Total Interest Expense 13,266 8,799 50.77%
---------- ---------- ---------
Net Interest Income 18,468 16,839 9.67%
Provision for Loan Losses 1,538 1,979 -22.28%
---------- ---------- ---------
Net Interest Income After
Provision for Loan Losses 16,930 14,860 13.93%
Non-Interest Income 5,804 4,321 34.32%
Non-Interest Expense 14,255 12,952 10.06%
---------- ---------- ---------
Income Before Income Taxes 8,479 6,229 36.12%
---------- ---------- ---------
Income Tax Expense 3,305 2,391 38.23%
---------- ---------- ---------
Net Income $ 5,174 $ 3,838 34.81%
========== ========== =========
Comprehensive Income $ 5,244 $ 3,627 44.58%
========== ========== =========
Per Share of Common Stock:
- ------------------------------------
Basic Earnings $0.53 $0.40 32.50%
========== ========== =========
Diluted Earnings $0.52 $0.39 33.33%
========== ========== =========
Dividends $0.28 $0.26 7.69%
========== ========== =========
Weighted Average Shares Outstanding:
- ------------------------------------
Basic 9,805,065 9,709,731
========== ==========
Diluted 9,942,078 9,799,609
========== ==========
Twelve Months Ended
December 31,
----------------------
2006 2005 % Change
---------- ---------- ---------
Operating Data:
- -----------------------------------
Total Interest Income $ 117,357 $ 87,191 34.60%
Total Interest Expense 45,400 28,405 59.83%
---------- ---------- ---------
Net Interest Income 71,957 58,786 22.40%
Provision for Loan Losses 5,507 6,365 -13.48%
---------- ---------- ---------
Net Interest Income After
Provision for Loan Losses 66,450 52,421 26.76%
Non-Interest Income 20,778 14,756 40.81%
Non-Interest Expense 52,776 44,340 19.03%
---------- ---------- ---------
Income Before Income Taxes 34,452 22,837 50.86%
---------- ---------- ---------
Income Tax Expense 13,190 8,674 52.06%
---------- ---------- ---------
Net Income $ 21,262 $ 14,163 50.12%
========== ========== =========
Comprehensive Income $ 21,503 $ 13,820 55.59%
========== ========== =========
Per Share of Common Stock:
- -----------------------------------
Basic Earnings $2.17 $1.73 25.43%
========== ========== =========
Diluted Earnings $2.14 $1.71 25.15%
========== ========== =========
Dividends $0.64 $0.62 3.23%
========== ========== =========
Weighted Average Shares
Outstanding:
- -----------------------------------
Basic 9,788,004 8,184,499
========== ==========
Diluted 9,933,278 8,276,133
========== ==========
Three Months Ended
----------------------------------------
December 31, September 30, December 31,
2006 2006 2005
------------ ------------- ------------
Key Financial Ratios:
- -----------------------------
Return on Average Assets 1.20% 1.32% 0.98%
Return on Average
Shareholders' Equity 11.16% 12.22% 9.10%
Return on Average Tangible
Shareholders' Equity (1) 14.10% 15.59% 11.65%
Interest Rate Spread 4.16% 4.35% 4.29%
Net Interest Margin 4.66% 4.83% 4.67%
Efficiency Ratio 58.73% 55.38% 61.21%
Twelve Months Ended
December 31,
-------------------
2006 2005
--------- ------
Key Financial Ratios:
- ------------------------------------------------
Return on Average Assets 1.28% 1.02%
Return on Average Shareholders' Equity 11.91% 11.09%
Return on Average Tangible Shareholders'
Equity (1) 15.25% 14.04%
Interest Rate Spread 4.32% 4.30%
Net Interest Margin 4.77% 4.61%
Efficiency Ratio 56.91% 60.29%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
December 31, September 30, December 31,
2006 2006 2005
------------ ------------- ------------
Asset Quality Ratios:
- -----------------------------
Nonperforming Loans as a
Percentage of Total Loans,
net of Unearned Income 0.23% 0.33% 0.49%
Nonperforming Assets as a
Percentage of Total Assets 0.29% 0.42% 0.65%
Allowance for Loan Losses
as a Percentage of Total
Loans, net of Unearned
Income 1.45% 1.45% 1.43%
Allowance for Loan Losses
as a Percentage of
Nonperforming Loans 635.93% 442.23% 293.56%
Net Charge-Offs to Average
Total Loans, Net of
Unearned Income 0.20% 0.20% 0.32%
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
December 31, 2006
(UNAUDITED)
Nonperforming Assets and Net Charge-offs
- ---------------------------------------------
As of and for the three months ended December
31, 2006 Bank Other Total
- --------------------------------------------- ------ ------ -------
Loans past due 90 days and still accruing $ 15 $ 13 $ 28
Nonaccrual loans 2,866 613 3,479
Other real estate owned and repossessed
assets 1,336 352 1,688
------ ------ -------
Total nonperforming assets $4,217 $ 978 $ 5,195
====== ====== =======
YTD annualized net charge-offs $2,041 $ 903 $ 2,944
====== ====== =======
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
December 31, 2006 Bank Other Consolidated
- ----------------------------------------- ------- ------- ------------
Nonperforming loans as a percentage of
total loans, net of unearned income 0.19% 1.84% 0.23%
Nonperforming assets as a percentage of
total assets 0.24% 2.53% 0.29%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.28% 7.94% 1.45%
Allowance for loan losses as a
percentage of nonperforming loans 680.25% 431.95% 635.93%
YTD annualized net charge-offs to
average total loans, net of unearned
income 0.14% 2.82% 0.20%
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 loans 278.65% 470.69% 293.56%
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
December 31, 2006
Three Months Ended
December 31,
-------------------------------------------------------
2006 2005
--------------------------- ---------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
---------- -------- ------- ---------- -------- -------
Interest-
earning
assets:
- --------------
Loans 1,516,804 31,012 8.11% 1,350,357 24,809 7.29%
Investment
securities 52,389 694 5.26% 60,301 649 4.27%
Other short-
term
investments 2,207 28 5.03% 18,597 180 3.84%
---------- -------- ------- ---------- -------- -------
Total
interest-
earning
assets 1,571,400 31,734 8.01% 1,429,255 25,638 7.12%
---------- -------- ------- ---------- -------- -------
Non-interest
earning
assets 151,121 140,186
---------- ----------
Total assets 1,722,521 1,569,441
========== ==========
Interest-
bearing
liabilities:
- --------------
Deposits:
- --------------
Now accounts,
money market
and savings 479,498 2,821 2.33% 496,629 2,178 1.74%
Time deposits 684,410 7,752 4.49% 630,787 5,255 3.31%
---------- -------- ------- ---------- -------- -------
Total interest
bearing-
deposits 1,163,908 10,573 3.60% 1,127,416 7,433 2.62%
---------- -------- ------- ---------- -------- -------
Securities
sold under
repurchase
and short-
term
borrowings 30,504 334 4.34% 15,840 132 3.31%
Notes payable 171,853 2,359 5.45% 92,657 1,234 5.28%
---------- -------- ------- ---------- -------- -------
Total
interest-
bearing
liabilities 1,366,265 13,266 3.85% 1,235,913 8,799 2.83%
---------- -------- ------- ---------- -------- -------
Non-Interest
Bearing
Liabilities:
- --------------
Demand
Deposits 150,609 146,261
Other
Liabilities 20,194 18,647
---------- ----------
Total Non-
Interest
Bearing
Liabilities 170,803 164,908
---------- ----------
Total
liabilities 1,537,068 1,400,821
---------- ----------
Shareholders'
equity 185,453 168,620
Total
liabilities &
shareholders'
equity 1,722,521 1,569,441
========== ==========
Net interest
income 18,468 16,839
======== ========
Interest rate
spread 4.16% 4.29%
======= =======
Net yield on
interest-
earning
assets (net
interest
margin) 4.66% 4.67%
======= =======
Twelve Months Ended
December 31,
-------------------------------------------------------
2006 2005
--------------------------- ---------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
---------- -------- ------- ---------- -------- -------
Interest-
earning
assets:
- --------------
Loans 1,450,516 114,493 7.89% 1,191,077 84,074 7.06%
Investment
securities 55,152 2,726 4.94% 58,750 2,340 3.98%
Other short-
term
investments 2,799 138 4.93% 25,964 777 2.99%
---------- -------- ------- ---------- -------- -------
Total
interest-
earning
assets 1,508,467 117,357 7.78% 1,275,791 87,191 6.84%
---------- -------- ------- ---------- -------- -------
Non-interest
earning
assets 148,311 112,805
---------- ----------
Total assets 1,656,778 1,388,596
========== ==========
Interest-
bearing
liabilities:
- --------------
Deposits:
- --------------
Now accounts,
money market
and savings 493,019 10,524 2.13% 423,619 5,654 1.33%
Time deposits 641,672 25,566 3.98% 591,608 17,827 3.01%
---------- -------- ------- ---------- -------- -------
Total interest
bearing-
deposits 1,134,691 36,090 3.18% 1,015,227 23,481 2.31%
---------- -------- ------- ---------- -------- -------
Securities
sold under
repurchase
and short-
term
borrowings 32,487 1,469 4.52% 15,695 414 2.64%
Notes payable 144,155 7,841 5.44% 89,429 4,510 5.04%
---------- -------- ------- ---------- -------- -------
Total
interest-
bearing
liabilities 1,311,333 45,400 3.46% 1,120,351 28,405 2.54%
---------- -------- ------- ---------- -------- -------
Non-Interest
Bearing
Liabilities:
- --------------
Demand
Deposits 147,947 125,071
Other
Liabilities 18,952 15,460
---------- ----------
Total Non-
Interest
Bearing
Liabilities 166,899 140,531
---------- ----------
Total
liabilities 1,478,232 1,260,882
---------- ----------
Shareholders'
equity 178,546 127,714
Total
liabilities &
shareholders'
equity 1,656,778 1,388,596
========== ==========
Net interest
income 71,957 58,786
======== ========
Interest rate
spread 4.32% 4.30%
======= =======
Net yield on
interest-
earning
assets (net
interest
margin) 4.77% 4.61%
======= =======
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
December 31, 2006
(UNAUDITED)
December 31, 2006 December 31, 2005
------------------ ------------------
Loans Balance % Balance % % Change
- ------------------- ---------- ------- ---------- ------- ---------
Commercial $ 258,998 16.70% $ 245,285 17.67% 5.59%
Commercial real
estate 921,190 59.38% 729,254 52.52% 26.32%
Residential real
estate 281,629 18.16% 319,797 23.03% -11.94%
Consumer 87,111 5.62% 90,682 6.53% -3.94%
Other 2,203 0.14% 3,476 0.25% -36.62%
---------- ------- ---------- ------- ---------
1,551,131 100.00% 1,388,494 100.00% 11.71%
======= ======= =========
Less: Unearned
interest income (11,502) (9,852)
---------- ----------
Total $1,539,629 $1,378,642
========== ==========
Loan Balances by Banking Units and
Operating Subsidiaries
- ---------------------------------------
December 31, 2006 December 31, 2005
------------------ ------------------
% to % to
Loan Total Loan Total
Balance Loans Balance Loans % Change
---------- ------- ---------- ------- ---------
Greene County Bank $ 105,452 6.85% $ 113,213 8.21% -6.86%
American Fidelity
Bank 529,379 34.38% 447,261 32.46% 18.36%
Bank of Athens 50,349 3.27% 46,744 3.39% 7.71%
Bank of Bulls Gap 4,972 0.32% 5,273 0.38% -5.71%
Bank of Niota 7,847 0.51% 10,478 0.76% -25.11%
Clarksville
Community Bank 105,463 6.85% 107,660 7.81% -2.04%
Cocke County Bank 6,579 0.43% 6,021 0.44% 9.27%
Community Bank of
Loudon County 30,753 2.00% 23,362 1.69% 31.64%
Community Trust
Bank 7,304 0.47% 9,937 0.72% -26.50%
First Bristol Bank 61,912 4.02% 57,661 4.18% 7.37%
First Independent
Bank 58,745 3.82% 65,391 4.74% -10.16%
Hamblen County Bank 45,986 2.99% 48,944 3.55% -6.04%
Hawkins County Bank 32,528 2.11% 31,887 2.31% 2.01%
Bank of Lawrence
County 22,904 1.49% 24,222 1.76% -5.44%
Middle Tennessee
Bank and Trust 131,819 8.56% 87,351 6.34% 50.91%
Rutherford Bank and
Trust 95,448 6.20% 83,590 6.06% 14.19%
Sullivan County
Bank 14,677 0.95% 16,865 1.22% -12.97%
Washington County
Bank 193,461 12.57% 161,643 11.72% 19.68%
GCB Acceptance
Corporation 13,444 0.87% 12,140 0.88% 10.74%
Superior Financial
Services, Inc. 20,607 1.34% 18,999 1.38% 8.46%
---------- ------- ---------- ------- ---------
Totals $1,539,629 100.00% $1,378,642 100.00% 11.68%
========== ======= ========== ======= =========
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
December 31, 2006 December 31, 2005
------------------ ------------------
Deposits Balance % Balance % % Change
- ------------------- ---------- ------- ---------- ------- ---------
Non-interest
bearing demand $ 152,634 11.45% $ 144,216 11.13% 5.84%
Interest bearing
demand 304,828 22.88% 268,714 20.74% 13.44%
Money market and
savings 194,068 14.56% 245,740 18.96% -21.03%
Retail time 445,816 33.46% 425,506 32.83% 4.77%
Jumbo time 235,159 17.65% 211,703 16.34% 11.08%
---------- ------- ---------- ------- ---------
Total $1,332,505 100.00% $1,295,879 100.00% 2.83%
========== ======= ========== ======= =========
Deposit Balances by Banking Units and
Operating Subsidiaries
- ---------------------------------------
December 31, 2006 December 31, 2005
------------------ ------------------
Balance % Balance % % Change
---------- ------- ---------- ------- ---------
Greene County Bank $ 331,301 24.88% $ 322,396 24.90% 2.76%
American Fidelity
Bank 204,673 15.36% 184,874 14.27% 10.71%
Bank of Athens 28,896 2.17% 26,280 2.03% 9.95%
Bank of Bulls Gap 17,789 1.34% 16,181 1.25% 9.94%
Bank of Niota 17,092 1.28% 16,237 1.25% 5.27%
Clarksville
Community Bank 154,967 11.63% 169,032 13.04% -8.32%
Cocke County Bank 32,612 2.45% 28,314 2.18% 15.18%
Community Bank of
Loudon County 25,452 1.91% 24,507 1.89% 3.86%
Community Trust
Bank 4,981 0.37% 6,539 0.50% -23.83%
First Bristol Bank 34,784 2.61% 47,351 3.65% -26.54%
First Independent
Bank 96,934 7.27% 101,071 7.80% -4.09%
Hamblen County Bank 62,202 4.67% 52,998 4.09% 17.37%
Hawkins County Bank 45,234 3.39% 47,484 3.66% -4.74%
Bank of Lawrence
County 74,135 5.56% 70,519 5.44% 5.13%
Middle Tennessee
Bank and Trust 59,356 4.45% 38,919 3.00% 52.51%
Rutherford Bank and
Trust 52,762 3.96% 51,903 4.01% 1.66%
Sullivan County
Bank 13,184 0.99% 13,671 1.05% -3.56%
Washington County
Bank 76,151 5.71% 77,603 5.99% -1.87%
GCB Acceptance
Corporation - 0.00% - 0.00% -
Superior Financial
Services, Inc. - 0.00% - 0.00% -
---------- ------- ---------- ------- ---------
$1,332,505 100.00% $1,295,879 100.00% 2.83%
========== ======= ========== ======= =========
CONTACT: Greene County Bancshares, Inc.
James E. Adams, 423-278-3050
Senior Vice President and Chief Financial Officer