Exhibit 99.1
Greene County Bancshares Reports Record
Quarterly Earnings, up 10%, and Continued Strong Loan Growth
GREENEVILLE, Tenn.--(BUSINESS WIRE)--April 12, 2007--Greene County
Bancshares, Inc. (NASDAQ: GCBS) today announced higher earnings and
solid operating results for the first quarter ended March 31, 2007.
Net income increased to $5,616,000 or $0.57 per diluted share, up 10%
from $5,096,000 or $0.52 per diluted share in the first quarter of
2006. Balance sheet highlights included strong organic growth in the
Company's loan portfolio, continued improvement in credit quality, and
higher deposits.
Return on Average Assets (ROA) was 1.26% in the first quarter of
2007 compared with 1.20% in the fourth quarter of 2006 and 1.27% in
the year-earlier quarter. Return on Average Equity (ROE) increased to
11.93% in the first quarter of 2007, up from 11.16% in the fourth
quarter of 2006 and 11.86% in the year-earlier period. Return on
Average Tangible Equity (ROTE) (average shareholders' equity less
goodwill and intangible assets) was 14.99% in the first quarter of
2007 versus 14.10% in the fourth quarter of 2006 and 15.41% last year.
Commenting on the Company's announcement, Stan Puckett, Chairman
and Chief Executive Officer, said, "We are very pleased to report a
solid start in 2007, maintaining the momentum we achieved last year.
Key drivers for our financial success in the first quarter included
continued improvement in our credit quality, outstanding loan growth,
and higher non-interest income. Strategically, we announced and
implemented the rebranding of all of our banking operations under the
GreenBank name - a change that has been well accepted by our
customers, and we are enthusiastic about the value this action will
bring to our company in the months and years ahead. On the other hand,
we had hoped to achieve greater efficiencies in our operations during
the quarter and make better headway in improving our efficiency ratio,
which remains a priority for us. Recently, we took further steps to
reduce non-interest expense going forward, and we hope to see tangible
results from these efforts later in the year."
Net interest income for the first quarter increased by almost 10%
to $18,821,000 from $17,186,000 in the year-earlier period, driven by
a 13% increase in average loans outstanding between the periods. On a
linked-quarter basis, the Company's net interest margin improved four
basis points to 4.70% in the first quarter of 2007, while, on a
year-over-year basis, net interest margin declined 10 basis points
from 4.80% in the first quarter of 2006, reflecting a changing and
challenging interest rate environment. The Company's provision for
loan losses was $974,000 in the first quarter of 2007, down from
$1,064,000 in the first quarter of last year as a result of ongoing
improvements in asset quality.
Non-interest income increased 14% in the first quarter to
$5,399,000 from $4,755,000 in the same quarter last year. This advance
reflected the ongoing positive impact of the Company's High
Performance Checking Account product - a key strategic initiative.
First quarter "net" new checking accounts opened totaled 4,025
compared with 2,996 during the same quarter last year, an increase of
over 34%.
Non-interest expenses totaled $14,042,000 in the first quarter, up
$1,336,000 or 11% over $12,706,000 in the same period a year ago. The
Company's efficiency ratio improved 75 basis points to 57.98% in the
first quarter from 58.73% in the fourth quarter of 2006, and was 43
basis points higher versus 57.55% in the first quarter of 2006 due to
continued expansion initiatives throughout 2006.
Puckett concluded, "Outside the financial and operational success
we registered in the first quarter, the most important event for the
Company was the announcement of the proposed acquisition of Civitas
BankGroup, through which we will acquire Civitas and its 12 Middle
Tennessee branches. We expect that this merger, which should be
completed later in the second quarter, will add significant momentum
to our expansion efforts in the Nashville Metropolitan Statistical
Area and position us for further growth in this fast-growing market."
At March 31, 2007, the Company's total assets increased 14% to
$1,827,634,000 from $1,608,240,000 at March 31, 2006, and up 3% from
$1,772,654,000 at December 31, 2006. Net loans increased 14% to
$1,603,281,000 at March 31, 2007, from $1,404,627,000 at
March 31, 2006, and up 4% from $1,539,629,000 at December 31, 2006.
Deposits rose 8% to $1,390,442,000 at March 31, 2007, from
$1,285,738,000 at March 31, 2006, and up 4% from $1,332,505,000 at
December 31, 2006. Total shareholders' equity increased 10% to
$189,997,000 at March 31, 2007, versus $172,317,000 at March 31, 2006,
and up 3% from $184,471,000 at December 31, 2006.
Greeneville, Tennessee-based Greene County Bancshares, Inc., with
total assets of approximately $1.8 billion, is the holding company for
GreenBank. GreenBank, which traces its origin to 1890, has 49 branches
throughout East and Middle Tennessee, one branch each in Bristol,
Virginia, and Hot Springs, North Carolina, and a wealth management
office in Gallatin, Tennessee. In addition, GreenBank 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 automobile
lending; and Fairway Title Co., a title insurance company.
This communication is not a solicitation of a proxy from any
security holder of Greene County Bancshares, Inc. or Civitas
BankGroup, Inc. In connection with the proposed acquisition of Civitas
BankGroup, Greene County Bancshares has filed with the Securities and
Exchange Commission ("SEC") a registration statement on Form S-4 to
register the shares of Green County Bancshares common stock to be
issued to the shareholders of Civitas BankGroup. The registration
statement includes a joint proxy statement/prospectus and other
documents for the shareholders' meetings of Civitas BankGroup and
Greene County Bancshares at which time the proposed merger will be
considered. The registration statement and joint proxy
statement/prospectus contain important information about Greene
County, Civitas, the proposed merger and related matters.
Additional Information and Where to Find It
INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE JOINT
PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER
RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE
PROPOSED TRANSACTION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT GREENE COUNTY BANCSHARES, CIVITAS BANKGROUP AND THE PROPOSED
TRANSACTION.
Investors and security holders may obtain free copies of these
documents once they are available through the website maintained by
the SEC at www.sec.gov. Free copies of the joint proxy
statement/prospectus also may be obtained by directing a request by
telephone or mail to:
Greene County Bancshares, Inc. Civitas BankGroup, Inc.
100 North Main Street 4 Corporate Centre
Greeneville, TN 37743-4992 810 Crescent Centre Drive, Suite 320
Attention: Chief Financial Franklin, TN 37067
Officer Attention: Investor Relations
(423) 639-5111 (615) 263-9500
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy securities, nor shall there be any
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
Participants in the Solicitation
The directors and executive officers of Greene County and Civitas
may be deemed to be participants in the solicitation of proxies with
respect to the proposed transaction. Information about Greene County's
directors and executive officers is contained in the proxy statement
filed by Greene County with the SEC on March 27, 2006, which is
available on Greene County's web site www.greenbankusa.com and at the
address provided above. Information about Civitas' directors and
executive officers is contained in the proxy statement filed by
Civitas with the SEC on March 29, 2006, which is available on Civitas'
website www.civitasbankgroup.com. Other information regarding the
participants in the proxy solicitation and a description of their
direct and indirect interests by security holding or otherwise, will
be contained in the joint proxy statement/prospectus and other
relevant material to be filed with the SEC when they become available.
All statements, other than statements of historical fact included
in this release, are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. The words
"expect," "anticipate," "intend," "plan," "believe," "seek,"
"estimate" and similar expressions are intended to identify such
forward-looking statements, but other statements not based on
historical information may also be considered forward-looking
including statements about the benefits of the merger to Greene County
Bancshares and Civitas BankGroup, future financial and operating
results and Greene County Bancshares's plans, objectives and
intentions. All forward-looking statements are subject to risks,
uncertainties and other facts that may cause the actual results,
performance or achievements of Greene County Bancshares to differ
materially from any results expressed or implied by such
forward-looking statements. Such factors include, among others, the
risk that the cost savings and any revenue synergies from the merger
may be realized or take longer than anticipated, disruption from the
merger with customers, suppliers or employee relationships, the risk
of successful integration of the two businesses, the failure of
Civitas BankGroup or Greene County Bancshares shareholders to approve
the merger and the ability to obtain required governmental approvals
of the proposed terms and anticipated schedule. Additional factors
which could affect the forward-looking statements can be found in the
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and
Current Reports on Form 8-K of both Greene County Bancshares and
Civitas BankGroup filed or furnished with the Securities and Exchange
Commission and available on the Commission's website set forth above.
Greene County Bancshares and Civitas BankGroup disclaim any obligation
to update or revise any forward-looking statements contained in this
release, whether as a result of new information, future events or
otherwise.
GREENE COUNTY BANCSHARES, INC.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended
------------------------------------
March 31, Dec. 31, March 31,
2007 2006 2006
------------ ----------- -----------
Interest income $32,638 $31,734 $26,767
Interest expense 13,817 13,266 9,581
------------ ----------- -----------
Net interest income 18,821 18,468 17,186
Provision for loan losses 974 1,538 1,064
------------ ----------- -----------
Net interest income
after provision for loan losses 17,847 16,930 16,122
Non-interest income 5,399 5,804 4,755
Non-interest expense 14,042 14,255 12,706
------------ ----------- -----------
Income before income taxes 9,204 8,479 8,171
Income taxes 3,588 3,305 3,075
------------ ----------- -----------
Net income $5,616 $5,174 $5,096
============ =========== ===========
Comprehensive income $5,657 $5,244 $5,089
============ =========== ===========
Earnings per share:
Basic $0.57 $0.53 $0.52
============ =========== ===========
Diluted $0.57 $0.52 $0.52
============ =========== ===========
Weighted average shares:
Basic 9,815 9,805 9,771
============ =========== ===========
Diluted 9,910 9,942 9,871
============ =========== ===========
Dividends declared per share $0.13 $0.28 $0.12
============ =========== ===========
March 31, Dec. 31, March 31,
2007 2006 2006
------------ ----------- -----------
Total assets $1,827,634 $1,772,654 $1,608,240
Cash and cash equivalents 54,798 70,640 40,530
Investment securities 54,286 47,340 54,155
Loans, net of unearned interest 1,603,281 1,539,629 1,404,627
Allowance for loan losses 22,932 22,302 20,083
Deposits 1,390,442 1,332,505 1,285,738
Shareholders' equity 189,997 184,471 172,317
Tangible shareholders' equity (1) 151,727 145,931 132,965
Book value per share 19.35 18.80 17.62
Tangible book value per share (1) 15.45 14.87 13.59
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Balance Sheets
March 31, 2007, December 31, 2006 and March 31, 2006
(Dollars in thousands except share and per share data)
(Unaudited) (Unaudited)
March 31, December 31, March 31,
2007 2006(1) 2006
----------- ------------ -----------
ASSETS
---------------------------------
Cash and due from banks $34,729 $44,657 $39,189
Federal funds sold & other 20,069 25,983 1,341
Securities available-for-sale
("AFS") 45,587 37,740 44,311
Securities held-to-maturity (with
a market value of $1,640, $2,544
and $3,003 on March 31, 2007,
December 31, 2006 and March 31,
2006) 1,644 2,545 3,049
FHLB, Bankers Bank and other
stock, at cost 7,055 7,055 6,795
Loans held for sale 2,405 1,772 1,957
Loans, net of unearned interest 1,603,281 1,539,629 1,404,627
Allowance for loan losses (22,932) (22,302) (20,083)
Bank premises and equipment, net
of accumulated depreciation 58,722 57,258 52,109
Goodwill and other intangible
assets 38,270 38,540 39,352
Other assets 38,804 39,777 35,593
----------- ------------ -----------
Total Assets $1,827,634 $1,772,654 $1,608,240
=========== ============ ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
---------------------------------
Deposits $1,390,442 $1,332,505 $1,285,738
Federal funds purchased 17,415 20,000 0
Repurchase agreements 24,157 22,165 17,966
FHLB advances and notes payable 171,877 177,571 97,052
Subordinated debentures 13,403 13,403 13,403
Accrued interest payable and
other liabilities 20,343 22,539 21,764
----------- ------------ -----------
Total Liabilities 1,637,637 1,588,183 1,435,923
----------- ------------ -----------
SHAREHOLDERS' EQUITY
---------------------------------
Common Stock: $2 par value,
15,000,000 shares authorized;
9,819,218, 9,810,867 and
9,781,070 shares outstanding 19,638 19,622 19,562
Paid in Capital 72,156 71,828 71,052
Retained Earnings 98,291 93,150 82,080
Accumulated Other Comprehensive
Income (Loss) (88) (129) (377)
----------- ------------ -----------
Total Shareholders' Equity 189,997 184,471 172,317
----------- ------------ -----------
Total Liabilities &
Shareholders' Equity $1,827,634 $1,772,654 $1,608,240
=========== ============ ===========
(1) Derived from Audited Consolidated Financial Statements.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended March 31, 2007, December 31, 2006 and March 31,
2006
(Unaudited)
(Dollars in thousands except share and per share data)
Three Months Ended
--------------------------------
March 31, December March 31,
31,
2007 2006 2006
---------- ---------- ----------
Interest Income:
------------------------------------
Interest and Fees on Loans $31,915 $31,012 $26,100
Interest on Investment Securities 708 694 631
Interest on Federal Funds Sold and
Interest-earning
Deposits 15 28 36
---------- ---------- ----------
Total Interest Income 32,638 31,734 26,767
---------- ---------- ----------
Interest Expense:
------------------------------------
Interest on Deposits 11,153 10,573 8,042
Interest on Borrowings 2,664 2,693 1,539
---------- ---------- ----------
Total Interest Expense 13,817 13,266 9,581
---------- ---------- ----------
Net Interest Income 18,821 18,468 17,186
Provision for Loan Losses 974 1,538 1,064
---------- ---------- ----------
Net Interest Income after
Provision for Loan Losses 17,847 16,930 16,122
---------- ---------- ----------
Noninterest Income:
------------------------------------
Service Charges, Commissions and
Fees 4,289 4,805 3,231
Other Income 1,110 999 1,524
---------- ---------- ----------
Total Noninterest Income 5,399 5,804 4,755
---------- ---------- ----------
Noninterest Expense:
------------------------------------
Salaries and Benefits 7,458 6,883 6,391
Occupancy and Furniture and
Equipment Expense 2,096 2,084 2,059
Other Expenses 4,488 5,288 4,256
---------- ---------- ----------
Total Noninterest Expense 14,042 14,255 12,706
---------- ---------- ----------
Income Before Income Taxes 9,204 8,479 8,171
Income Taxes 3,588 3,305 3,075
---------- ---------- ----------
Net Income $5,616 $5,174 $5,096
========== ========== ==========
Comprehensive Income $5,657 $5,244 $5,089
========== ========== ==========
Per Share of Common Stock:
------------------------------------
Basic Earnings $0.57 $0.53 $0.52
========== ========== ==========
Diluted Earnings $0.57 $0.52 $0.52
========== ========== ==========
Dividends $0.13 $0.28 $0.12
========== ========== ==========
Weighted Average Shares Outstanding:
------------------------------------
Basic 9,815,452 9,805,065 9,770,555
========== ========== ==========
Diluted 9,910,315 9,942,078 9,870,691
========== ========== ==========
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
- ----------------------------------------------------------------------
March 31, December 31, %
2007 2006 Change
---------- ------------ ---------
Financial Condition Data:
- -----------------------------------
Assets $1,827,634 $ 1,772,654 3.10%
Loans, net of unearned interest 1,603,281 1,539,629 4.13%
Cash and investments 89,015 91,997 -3.24%
Federal funds sold 20,069 25,983 -22.76%
Deposits 1,390,442 1,332,505 4.35%
Federal funds purchased 17,415 20,000 -
FHLB advances and notes payable 171,877 177,571 -3.21%
Subordinated debentures 13,403 13,403 0.00%
Federal funds purchased and
repurchase agreements 24,157 22,165 8.99%
Shareholders' equity 189,997 184,471 3.00%
Tangible shareholders' equity (1) 151,727 145,931 3.97%
Ratios:
- -----------------------------------
Book value per share $19.35 $18.80 2.93%
Tangible book value per share
(1) $15.45 $14.87 3.90%
Average equity to average
assets 10.58% 10.78% -1.86%
Dividend payout ratio 22.81% 29.49%(2) -22.67%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
(2) Includes special dividend of $.16 per share paid in December
2006.
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Three Months Ended
March 31,
------------------------
2007 2006 % Change
---------- ------------ ---------
Operating Data:
- -----------------------------------
Total Interest Income $ 32,638 $ 26,767 21.93%
Total Interest Expense 13,817 9,581 44.21%
---------- ------------ ---------
Net Interest Income 18,821 17,186 9.51%
Provision for Loan Losses 974 1,064 -8.46%
---------- ------------ ---------
Net Interest Income After
Provision for Loan Losses 17,847 16,122 10.70%
Non-Interest Income 5,399 4,755 13.54%
Non-Interest Expense 14,042 12,706 10.51%
---------- ------------ ---------
Income Before Income Taxes 9,204 8,171 12.64%
---------- ------------ ---------
Income Tax Expense 3,588 3,075 16.68%
---------- ------------ ---------
Net Income $ 5,616 $ 5,096 10.20%
========== ============ =========
Comprehensive Income $ 5,657 $ 5,089 11.16%
========== ============ =========
Per Share of Common Stock:
- -----------------------------------
Basic Earnings $0.57 $0.52 9.62%
========== ============ =========
Diluted Earnings $0.57 $0.52 9.62%
========== ============ =========
Dividends $0.13 $0.12 8.33%
========== ============ =========
Weighted Average Shares
Outstanding:
- -----------------------------------
Basic 9,815,452 9,770,555
========== ============
Diluted 9,910,315 9,870,691
========== ============
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Three Months Ended
----------------------------------
March 31, December 31, March 31,
2007 2006 2006
---------- ------------ ---------
Key Financial Ratios:
- -----------------------------------
Return on Average Assets 1.26% 1.20% 1.27%
Return on Average Shareholders'
Equity 11.93% 11.16% 11.86%
Return on Average Tangible
Shareholders' Equity (1) 14.99% 14.10% 15.41%
Interest Rate Spread 4.21% 4.16% 4.42%
Net Interest Margin 4.70% 4.66% 4.80%
Efficiency Ratio 57.98% 58.73% 57.55%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
March 31, December 31, March 31,
2007 2006 2006
---------- ------------ ---------
Asset Quality Ratios:
- -----------------------------------
Nonperforming Loans as a
Percentage of Total Loans, net
of Unearned Income 0.21% 0.23% 0.35%
Nonperforming Assets as a
Percentage of Total Assets 0.28% 0.29% 0.49%
Allowance for Loan Losses as a
Percentage of Total Loans, net
of Unearned Income 1.43% 1.45% 1.43%
Allowance for Loan Losses as a
Percentage of Nonperforming
Loans 690.10% 635.93% 405.23%
Net Charge-Offs to Average
Total Loans, Net of Unearned
Income 0.09% 0.20% 0.21%
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
March 31, 2007
(UNAUDITED)
- ---------------------------------------------- ------- ------- -------
Nonperforming Assets and Net Charge-offs
---------------------------------------------
As of and for the three months ended March Bank Other Total
31, 2007
--------------------------------------------- ------- ------- -------
Loans past due 90 days and still accruing $27 $10 $37
Nonaccrual loans 2,794 492 3,286
Other real estate owned and repossessed
assets 1,585 250 1,835
------- ------- -------
Total nonperforming assets $4,406 $752 $5,158
======= ======= =======
YTD annualized net charge-offs $368 $1,004 $1,372
======= ======= =======
As of and for the three months ended March Bank Other Total
31, 2006
--------------------------------------------- ------- ------- -------
Loans past due 90 days and still accruing $20 $54 $74
Nonaccrual loans 4,590 292 4,882
Other real estate owned and repossessed
assets 2,752 244 2,996
------- ------- -------
Total nonperforming assets $7,362 $590 $7,952
======= ======= =======
YTD annualized net charge-offs $2,080 $800 $2,880
======= ======= =======
As of and for the year ended December 31, Bank Other Total
2006
--------------------------------------------- ------- ------- -------
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
======= ======= =======
Net charge-offs $2,041 $903 $2,944
======= ======= =======
Asset Quality Ratios
---------------------------------------
As of and for the three months ended Bank Other Consolidated
March 31, 2007
----------------------------------------------- ------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.18% 1.43% 0.21%
Nonperforming assets as a percentage
of total assets 0.24% 2.04% 0.28%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.26% 8.01% 1.43%
Allowance for loan losses as a
percentage of nonperforming loans 713.22% 560.16% 690.10%
YTD annualized net charge-offs to
average total loans, net of unearned
income 0.02% 2.93% 0.09%
As of and for the three months ended Bank Other Consolidated
March 31, 2006
----------------------------------------------- ------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.33% 1.11% 0.35%
Nonperforming assets as a percentage
of total assets 0.46% 1.68% 0.49%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.26% 7.94% 1.43%
Allowance for loan losses as a
percentage of nonperforming loans 381.87% 716.47% 405.23%
YTD annualized net charge-offs to
average total loans, net of unearned
income 0.15% 2.59% 0.21%
As of and for the year ended December Bank Other Consolidated
31, 2006
--------------------------------------- ------- ------- ------------
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%
Net charge-offs to average total
loans, net of unearned income 0.14% 2.82% 0.20%
GREENE COUNTY BANCSHARES, INC.
Condensed Average Balances, Interest Rates and Yields
March 31, 2007
Three Months Ended
March 31,
-------------------------------------------------------
2007 2006
--------------------------- ---------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
---------- -------- ------- ---------- -------- -------
Interest-
earning
assets:
- --------------
Loans 1,572,640 31,915 8.23% 1,392,401 26,100 7.60%
Investment
securities 51,676 707 5.55% 56,446 631 4.53%
Other short-
term
investments 1,258 16 5.16% 3,374 36 4.33%
---------- -------- ------- ---------- -------- -------
Total
interest-
earning
assets 1,625,574 32,638 8.14% 1,452,221 26,767 7.48%
---------- -------- ------- ---------- -------- -------
Non-interest
earning
assets 153,345 147,140
---------- ----------
Total assets 1,778,919 1,599,361
========== ==========
Interest-
bearing
liabilities:
- --------------
Deposits:
- --------------
Now accounts,
money market
and savings 540,648 3,546 2.66% 520,821 2,576 2.01%
Time deposits 673,242 7,607 4.58% 626,047 5,466 3.54%
---------- -------- ------- ---------- -------- -------
Total interest
bearing-
deposits 1,213,890 11,153 3.73% 1,146,868 8,042 2.84%
---------- -------- ------- ---------- -------- -------
Securities
sold under
repurchase
and short-
term
borrowings 25,856 286 4.49% 21,678 207 3.87%
Notes payable 185,312 2,378 5.20% 101,629 1,332 5.32%
---------- -------- ------- ---------- -------- -------
Total
interest-
bearing
liabilities 1,425,058 13,817 3.93% 1,270,175 9,581 3.06%
---------- -------- ------- ---------- -------- -------
Non-Interest
Bearing
Liabilities:
- --------------
Demand
Deposits 145,185 140,044
Other
Liabilities 20,398 17,312
---------- ----------
Total Non-
Interest
Bearing
Liabilities 165,583 157,356
---------- ----------
Total
liabilities 1,590,641 1,427,531
---------- ----------
Shareholders'
equity 188,278 171,830
Total
liabilities &
shareholders'
equity 1,778,919 1,599,361
========== ==========
Net interest
income 18,821 17,186
======== ========
Interest rate
spread 4.21% 4.42%
======= =======
Net yield on
interest-
earning
assets (net
interest
margin) 4.70% 4.80%
======= =======
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
March 31, 2007
(UNAUDITED)
- ----------------------------------------------------------------------
March 31, 2007 December 31, 2006
------------------ ------------------
Loans Balance % Balance % % Change
------------------- ---------- ------- ---------- ------- ---------
Commercial $ 273,198 16.91% $ 258,998 16.70% 5.48%
Commercial real
estate 977,323 60.49% 921,190 59.38% 6.09%
Residential real
estate 274,496 16.99% 281,629 18.16% -2.53%
Consumer 87,580 5.42% 87,111 5.62% 0.54%
Other 3,021 0.19% 2,203 0.14% 37.13%
---------- ------- ---------- ------- ---------
1,615,618 100.00% 1,551,131 100.00% 4.16%
======= ======= =========
Less: Unearned
interest income (12,337) (11,502)
---------- ----------
Total $1,603,281 $1,539,629
========== ==========
Loan Balances by Geographical Region
and Operating Subsidiaries
--------------------------------------
March 31, 2007 December 31, 2006
------------------ ------------------
% to % to
Loan Total Loan Total
Balance Loans Balance Loans % Change
---------- ------- ---------- ------- ---------
Northeastern
Tennessee
Region(1) $ 472,032 29.44% $ 465,567 30.24% 1.39%
East Tennessee
Region 662,227 41.31% 625,632 40.64% 5.85%
Middle Tennessee
Region 433,900 27.06% 414,379 26.91% 4.71%
GCB Acceptance
Corporation 14,533 0.91% 13,444 0.87% 8.10%
Superior Financial
Services, Inc. 20,589 1.28% 20,607 1.34% -0.09%
---------- ------- ---------- ------- ---------
Totals $1,603,281 100.00% $1,539,629 100.00% 4.13%
========== ======= ========== ======= =========
(1) Includes one branch located in Southwestern Virginia and one
branch located in Northwestern North Carolina
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
March 31, 2007 December 31, 2006
------------------ ------------------
Deposits Balance % Balance % % Change
------------------- ---------- ------- ---------- ------- ---------
Non-interest
bearing demand $ 150,716 10.84% $ 152,634 11.45% -1.26%
Interest bearing
demand 368,312 26.49% 304,828 22.88% 20.83%
Money market and
savings 214,150 15.40% 194,068 14.56% 10.35%
Retail time 421,595 30.32% 445,816 33.46% -5.43%
Jumbo time 235,669 16.95% 235,159 17.65% 0.22%
---------- ------- ---------- ------- ---------
Total $1,390,442 100.00% $1,332,505 100.00% 4.35%
========== ======= ========== ======= =========
Deposit Balances by Geographical
Region and Operating Subsidiaries
--------------------------------------
March 31, 2007 December 31, 2006
------------------ ------------------
Balance % Balance % % Change
---------- ------- ---------- ------- ---------
Northeastern
Tennessee
Region(1) $ 646,601 46.50% $ 613,257 46.02% 5.44%
East Tennessee
Region 283,373 20.38% 281,094 21.10% 0.81%
Middle Tennessee
Region 460,468 33.12% 438,154 32.88% 5.09%
GCB Acceptance
Corporation - 0.00% - 0.00% -
Superior Financial
Services, Inc. - 0.00% - 0.00% -
---------- ------- ---------- ------- ---------
$1,390,442 100.00% $1,332,505 100.00% 4.35%
========== ======= ========== ======= =========
(1) Includes one branch located in Southwestern Virginia and one
branch located in Northwestern North Carolina
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CONTACT: Greene County Bancshares, Inc.
James E. Adams, 423-278-3050
Senior Vice President and Chief Financial Officer