Green Bankshares Reports Record Quarterly Earnings,
up 13% to $0.62 Per Diluted Share
Results of Operations Reflect Both Strong Organic Growth and the
Recent Completion of the Civitas Acquisition
GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 16, 2007--Green
Bankshares, Inc. (NASDAQ:GRNB), the holding company for GreenBank,
today announced record results for the second quarter and first six
months of 2007, highlighted by a 13% year-over-year increase in
quarterly diluted per share earnings to $0.62 over the year-earlier
quarter and an 11% increase in year-to-date diluted per share earnings
to $1.19 over the same period a year ago. The 2007 diluted per share
earnings reflect an increase in weighted average shares outstanding
associated with the Company's May acquisition of Civitas BankGroup.
Net income for the second quarter increased 29% to $7,086,000
compared with $5,483,000 in the year earlier period. For the first
half of 2007, net income rose by over 20% to $12,702,000 from
$10,579,000 in the same period last year. Operating earnings,
excluding one-time merger expenses of $450,000 incurred during the
second quarter, would have been $7,365,000 or $0.65 per diluted share
for the quarter and $12,981,000 or $1.22 per diluted share for the
first half of 2007, representing increases of 34% and 23%,
respectively, over the comparable periods last year. The Company's
income statement and balance sheet for the second quarter reflected
continued strong organic growth in the Company's business as well as
the positive impact of the Civitas acquisition. Together, these
factors helped push Green Bankshares's total assets to $2.9 billion as
of June 30, 2007, ranking the Company as the second largest financial
institution based in Tennessee.
Commenting on the second quarter results, Stan Puckett, Chairman
and Chief Executive Officer, said, "We are pleased with second quarter
operating earnings and the underlying trends that influence future
performance. Credit quality was exceptional with net charge-offs of
only four basis points on a consolidated basis and a mere one basis
point at the bank-only level. Organic loan growth from the first
quarter was a robust 26% on an annualized basis and loan pricing
remained solid in the face of intense competition."
Puckett added, "The successful conclusion of the Civitas merger
was a milestone event for us, boosting our presence significantly in
Middle Tennessee and strengthening our footprint across the state.
Importantly, the integration work behind the merger went smoothly and
efficiently, much to the credit of our new associates in the 12 former
Cumberland Bank branches, enabling these new locations for GreenBank
to add immediately to our operating momentum. Our expanded service
platform will enhance our ability to reach new customers and deliver
the solutions to meet their financial needs. All systems, technology
and operating policies at both banks have been fully integrated since
May 18."
Puckett pointed out that the Company added $723,868,000 to its
loan portfolio in the second quarter, representing an increase of 45%
over the first quarter of 2007, with approximately 86% of this amount
related to the Civitas acquisition. Over the past year, the Company's
loan portfolio has increased 62% to $2,327,149,000. "Margins remain a
challenge in this environment, especially considering some high-cost
deposits acquired in the Civitas transaction, but we expect scheduled
maturities on these accounts over the near term will help manage this
challenge," Puckett said.
Return on Average Assets (ROA) was 1.21% in the second quarter of
2007 versus 1.26% in the first quarter of 2007 and 1.34% in the second
quarter of 2006. Return on Average Equity (ROE) was 11.25% in the
second quarter of 2007 compared with 11.93% in the first quarter of
2007 and 12.43% in the second quarter of 2006. Return on Average
Tangible Equity (ROTE) (average shareholders' equity less goodwill and
intangible assets) was 17.92% in the second quarter of 2007 versus
14.99% in the first quarter of 2007 and 15.99% in the year-earlier
quarter.
Net interest income for the second quarter increased 29% to
$22,933,000 from $17,773,000 in the year-earlier period, driven by a
38% or $535,000,000 quarter-over-quarter increase in average loans
outstanding, of which approximately $225,000,000 related to the
Company's May acquisition of Civitas, with the remainder reflecting
organic growth. Net interest income for the first six months of 2007
increased 19% to $41,754,000 from $34,959,000 in the year-earlier
period. The quarter's provision for loan losses rose 1% to $1,259,000
from $1,244,000 in the second quarter of last year, underscoring the
continued improvements in asset quality witnessed by the Company. For
the first half of 2007, the provision for loan losses declined 3% to
$2,233,000 from $2,308,000 in the same period last year.
Net interest margin declined 33 basis points on a linked-quarter
basis to 4.37% in the second quarter of 2007 while, on a
year-over-year basis, net interest margin declined 44 basis points
from 4.81% in the second quarter of 2006. This margin compression
primarily reflected the impact of higher-cost funding associated with
deposits acquired in the Civitas transaction as well as the ongoing
challenges of the current interest rate environment. Net interest
margin for the first half of 2007 was 4.51%, down 30 basis points from
the same period in 2006.
Non-interest income for the second quarter was $6,483,000, up 29%
from $5,028,000 in the second quarter last year. For the first six
months of 2007, non-interest income rose 21% to $11,882,000 from
$9,783,000 in the comparable period of 2006.
Non-interest expenses totaled $16,709,000 in the second quarter,
including one-time merger expenses of $450,000, up 32% from
$12,679,000 in the same period a year ago. The Company's efficiency
ratio was 56.80% in the second quarter compared with 57.98% in the
first quarter of 2007 and was up from 55.61% in the second quarter of
2006 due to ongoing expansion initiatives since mid-2006. Non-interest
expenses increased 21% to $30,751,000 in the first half of 2007 from
$25,385,000 in the same period a year ago. The Company's efficiency
ratio for the first half of 2007 was 57.33% versus 56.74% in the first
six months of 2006.
Puckett concluded, "GreenBank's commitment to being 'Tennessee's
Most Convenient Bank' continues to resonate in our markets as
evidenced by a net gain of 3,216 checking account customers during the
second quarter, excluding the Civitas purchase. We will introduce our
High Performance Checking program as well as extended hours, including
Sunday banking, at the former Cumberland Bank branches in September.
As always, expense management remains a priority throughout the
Company."
Greeneville, Tennessee-based Green Bankshares, Inc., with total
assets of approximately $2.927 billion, is the holding company for
GreenBank. GreenBank, which traces its origin to 1890, has more than
60 branches across 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.
Certain matters discussed in this news release are not historical
facts but are "forward-looking statements" within the meaning of and
are furnished pursuant to the Private Securities Litigation Reform Act
of 1995. 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. Risks and uncertainties related to the Company's business
are discussed in the Company's SEC filings, including its Annual
Report on Form 10-K for the year ended December 31, 2006, and
Quarterly Reports on Form 10-Q for the quarter ended March 31, 2007.
The Company undertakes no obligation to update forward-looking
statements.
GREEN BANKSHARES, INC.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
----------------------------- ---------------------
June 30, March 31, June 30, June 30, June 30,
2007 2007 2006 2007 2006
-------- --------- ---------- ---------- ----------
Interest income $41,783 $32,638 $28,489 $74,421 $55,256
Interest expense 18,850 13,817 10,716 32,667 20,297
-------- --------- ---------- ---------- ----------
Net interest income 22,933 18,821 17,773 41,754 34,959
Provision for loan
losses 1,259 974 1,244 2,233 2,308
-------- --------- ---------- ---------- ----------
Net interest income
after provision
for loan losses 21,674 17,847 16,529 39,521 32,651
Non-interest income 6,483 5,399 5,028 11,882 9,783
Non-interest
expense 16,709 14,042 12,679 30,751 25,385
-------- --------- ---------- ---------- ----------
Income before
income taxes 11,448 9,204 8,878 20,652 17,049
Income taxes 4,362 3,588 3,395 7,950 6,470
-------- --------- ---------- ---------- ----------
Net income $7,086 $5,616 $5,483 $12,702 $10,579
======== ========= ========== ========== ==========
Comprehensive
income $4,357 $5,657 $5,498 $10,014 $10,587
======== ========= ========== ========== ==========
Earnings per share:
Basic $0.63 $0.57 $0.56 $1.20 $1.08
======== ========= ========== ========== ==========
Diluted $0.62 $0.57 $0.55 $1.19 $1.07
======== ========= ========== ========== ==========
Weighted average
shares:
Basic 11,322 9,815 9,786 10,573 9,778
======== ==================== ========== ==========
Diluted 11,396 9,910 9,898 10,648 9,892
======== ==================== ========== ==========
Dividends declared
per share $0.13 $0.13 $0.12 $0.26 $0.24
======== ==================== ========== ==========
June 30, Dec. 31, June 30,
2007 2006 2006
---------- ---------- ----------
Total assets $2,927,298 $1,772,654 $1,665,630
Cash and cash
equivalents 71,814 70,640 63,974
Investment
securities 255,077 47,340 54,076
Loans, net of
unearned interest 2,327,149 1,539,629 1,437,935
Allowance for loan
losses 32,935 22,302 20,834
Deposits 2,069,749 1,332,505 1,283,606
Shareholders'
equity 311,405 184,471 176,889
Tangible
shareholders'
equity(1) 153,247 145,931 137,808
Book value per
share 24.09 18.80 18.07
Tangible book value
per share(1) 11.85 14.87 14.08
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
GREEN BANKSHARES, INC.
Condensed Consolidated Balance Sheets
June 30, 2007, December 31, 2006 and June 30, 2006
(Dollars in thousands except share and per share data)
(Unaudited) (Unaudited)
June 30, Dec. 31, June 30,
2007 2006(1) 2006
----------- ---------- -----------
ASSETS
- ---------------------------------
Cash and due from banks $ 70,807 $ 44,657 $ 44,358
Federal funds sold & other 1,007 25,983 19,616
Securities available-for-sale
("AFS") 242,882 37,740 44,457
Securities held-to-maturity (with
a market value of $1,347, $2,544
and $2,696 on June 30, 2007,
December 31, 2006 and June 30,
2006) 1,358 2,545 2,740
FHLB, Bankers Bank and other
stock, at cost 10,837 7,055 6,879
Loans held for sale 10,705 1,772 2,054
Loans, net of unearned interest 2,327,149 1,539,629 1,437,935
Allowance for loan losses (32,935) (22,302) (20,834)
Bank premises and equipment, net
of accumulated depreciation 79,957 57,258 52,735
Goodwill and other intangible
assets 158,158 38,540 39,081
Other assets 57,373 39,777 36,609
----------- ---------- -----------
Total Assets $ 2,927,298 $1,772,654 $ 1,665,630
=========== ========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
- ---------------------------------
Deposits $ 2,069,749 $1,332,505 $ 1,283,606
Federal funds purchased 41,862 20,000 26,000
Repurchase agreements 83,598 22,165 25,133
FHLB advances and notes payable 287,983 177,571 123,281
Subordinated debentures 88,662 13,403 13,403
Accrued interest payable and
other liabilities 44,039 22,539 17,318
----------- ---------- -----------
Total Liabilities 2,615,893 1,588,183 1,488,741
----------- ---------- -----------
SHAREHOLDERS' EQUITY
- ---------------------------------
Common Stock: $2 par value,
20,000,000 shares authorized;
12,927,407, 9,810,867 and
9,788,145 shares outstanding 25,855 19,622 19,577
Paid in Capital 184,672 71,828 71,285
Retained Earnings 103,695 93,150 86,389
Accumulated Other Comprehensive
Income (Loss) (2,817) (129) (362)
----------- ---------- -----------
Total Shareholders' Equity 311,405 184,471 176,889
----------- ---------- -----------
Total Liabilities &
Shareholders' Equity $ 2,927,298 $1,772,654 $ 1,665,630
=========== ========== ===========
(1) Derived from Audited Consolidated Financial Statements.
GREEN BANKSHARES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended June 30, 2007, March 31, 2006 and June 30, 2006 and
Six Months Ended June 30, 2007 and 2006
(Unaudited)
(Dollars in thousands except share and per share data)
Three Months Ended Six Months Ended
------------------------------ --------------------
June 30, March 31, June 30, June 30, June 30,
2007 2007 2006 2007 2006
---------- --------- --------- ---------- ---------
Interest Income:
- ------------------
Interest and
Fees on Loans $39,681 $31,915 $27,781 $71,596 $53,881
Interest on
Investment
Securities 2,090 708 649 2,798 1,280
Interest on
Federal Funds
Sold and
Interest-
earning
Deposits 12 15 59 27 95
---------- --------- --------- ---------- ---------
Total
Interest
Income 41,783 32,638 28,489 74,421 55,256
---------- --------- --------- ---------- ---------
Interest Expense:
- ------------------
Interest on
Deposits 15,012 11,153 8,647 26,165 16,689
Interest on
Borrowings 3,838 2,664 2,069 6,502 3,608
---------- --------- --------- ---------- ---------
Total
Interest
Expense 18,850 13,817 10,716 32,667 20,297
---------- --------- --------- ---------- ---------
Net Interest
Income 22,933 18,821 17,773 41,754 34,959
Provision for Loan
Losses 1,259 974 1,244 2,233 2,308
---------- --------- --------- ---------- ---------
Net Interest
Income after
Provision
for Loan
Losses 21,674 17,847 16,529 39,521 32,651
---------- --------- --------- ---------- ---------
Noninterest
Income:
- ------------------
Service Charges,
Commissions and
Fees 5,395 4,289 4,001 9,684 7,232
Other Income 1,088 1,110 1,027 2,198 2,551
---------- --------- --------- ---------- ---------
Total
Noninterest
Income 6,483 5,399 5,028 11,882 9,783
---------- --------- --------- ---------- ---------
Noninterest
Expense:
- ------------------
Salaries and
Benefits 8,472 7,458 6,266 15,930 12,657
Occupancy and
Furniture and
Equipment
Expense 2,626 2,096 2,050 4,722 4,109
Other Expenses 5,611 4,488 4,363 10,099 8,619
---------- --------- --------- ---------- ---------
Total
Noninterest
Expense 16,709 14,042 12,679 30,751 25,385
---------- --------- --------- ---------- ---------
Income Before
Income Taxes 11,448 9,204 8,878 20,652 17,049
Income Taxes 4,362 3,588 3,395 7,950 6,470
---------- --------- --------- ---------- ---------
Net Income $7,086 $5,616 $5,483 $12,702 $10,579
========== ========= ========= ========== =========
Comprehensive
Income $4,357 $5,657 $5,498 $10,014 $10,587
========== ========= ========= ========== =========
Per Share of
Common Stock:
- ------------------
Basic Earnings $0.63 $0.57 $0.56 $1.20 $1.08
========== ========= ========= ========== =========
Diluted Earnings $0.62 $0.57 $0.55 $1.19 $1.07
========== ========= ========= ========== =========
Dividends $0.13 $0.13 $0.12 $0.26 $0.24
========== ========= ========= ========== =========
Weighted Average
Shares
Outstanding:
- ------------------
Basic 11,321,822 9,815,452 9,785,936 10,572,798 9,778,288
========== ========= ========= ========== =========
Diluted 11,395,518 9,910,315 9,897,987 10,647,638 9,891,817
========== ========= ========= ========== =========
GREEN BANKSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
- ----------------------------------------------------------------------
June 30, Dec. 31, %
2007 2006 Change
---------- ---------- -------
Financial Condition Data:
------------------------------------
Assets $2,927,298 $1,772,654 65.14%
Loans, net of unearned interest 2,327,149 1,539,629 51.15%
Cash and investments 325,884 91,997 254.23%
Federal funds sold 1,007 25,983 -96.12%
Deposits 2,069,749 1,332,505 55.33%
Federal funds purchased 41,862 20,000 -
FHLB advances and notes payable 287,983 177,571 62.18%
Subordinated debentures 88,662 13,403 561.51%
Federal funds purchased and
repurchase agreements 83,598 22,165 277.16%
Shareholders' equity 311,405 184,471 68.81%
Tangible shareholders' equity(1) 153,247 145,931 5.01%
Ratios:
------------------------------------
Book value per share $24.09 $18.80 28.14%
Tangible book value per share(1) $11.85 $14.87 -20.31%
Average equity to average assets 10.67% 10.78% -1.02%
Dividend payout ratio 22.03% 29.49%(2)-25.29%
(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 Six Months Ended
June 30, June 30,
-------------------- --------------------
% %
2007 2006 Change 2007 2006 Change
---------- --------- ------- ---------- --------- ------
Operating
Data:
- --------------
Total Interest
Income $41,783 $28,489 46.66% $74,421 $55,256 34.68%
Total Interest
Expense 18,850 10,716 75.91% 32,667 20,297 60.94%
---------- --------- ------- ---------- --------- ------
Net Interest
Income 22,933 17,773 29.03% 41,754 34,959 19.44%
Provision for
Loan Losses 1,259 1,244 1.21% 2,233 2,308 -3.25%
---------- --------- ------- ---------- --------- ------
Net Interest
Income After
Provision
for Loan
Losses 21,674 16,529 31.13% 39,521 32,651 21.04%
Non-Interest
Income 6,483 5,028 28.94% 11,882 9,783 21.46%
Non-Interest
Expense 16,709 12,679 31.78% 30,751 25,385 21.14%
---------- --------- ------- ---------- --------- ------
Income Before
Income Taxes 11,448 8,878 28.95% 20,652 17,049 21.13%
---------- --------- ------- ---------- --------- ------
Income Tax
Expense 4,362 3,395 28.48% 7,950 6,470 22.87%
---------- --------- ------- ---------- --------- ------
Net Income $7,086 $5,483 29.24% $12,702 $10,579 20.07%
========== ========= ======= ========== ========= ======
Comprehensive
Income $4,357 $5,498 -20.75% $10,014 $10,587 -5.41%
========== ========= ======= ========== ========= ======
Per Share of
Common Stock:
- --------------
Basic
Earnings $0.63 $0.56 12.50% $1.20 $1.08 11.11%
========== ========= ======= ========== ========= ======
Diluted
Earnings $0.62 $0.55 12.73% $1.19 $1.07 11.21%
========== ========= ======= ========== ========= ======
Dividends $0.13 $0.12 8.33% $0.26 $0.24 8.33%
========== ========= ======= ========== ========= ======
Weighted
Average
Shares
Outstanding:
- --------------
Basic 11,321,822 9,785,936 10,572,798 9,778,288
========== ========= ========== =========
Diluted 11,395,518 9,897,987 10,647,638 9,891,817
========== ========= ========== =========
Three Months Ended Six Months
Ended
---------------------------
June 30, Dec. 31, June 30, June 30,
--------------
2007 2006 2006 2007 2006
-------- -------- -------- ------ ------
Key Financial Ratios:
- --------------------------
Return on Average Assets 1.21% 1.20% 1.34% 1.23% 1.31%
Return on Average
Shareholders' Equity 11.25% 11.16% 12.43% 11.53% 12.15%
Return on Average Tangible
Shareholders' Equity(1) 17.92% 14.10% 15.99% 16.49% 15.70%
Interest Rate Spread 3.91% 4.16% 4.36% 4.04% 4.39%
Net Interest Margin 4.37% 4.66% 4.81% 4.51% 4.81%
Efficiency Ratio 56.80% 58.73% 55.61% 57.33% 56.74%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
June 30, Dec. 31, June 30,
2007 2006 2006
-------- -------- --------
Asset Quality Ratios:
- -------------------------------------------
Nonperforming Loans as a Percentage of
Total Loans, 0.21% 0.23% 0.34%
net of Unearned Income
Nonperforming Assets as a Percentage of
Total Assets 0.20% 0.29% 0.47%
Allowance for Loan Losses as a Percentage
of Total Loans,
net of Unearned Income 1.42% 1.45% 1.45%
Allowance for Loan Losses as a Percentage
of
Nonperforming Loans 674.48% 635.93% 426.84%
Net Charge-Offs to Average Total Loans,
Net of
Unearned Income 0.04% 0.20% 0.09%
GREEN BANKSHARES, INC.
Consolidated Financial Highlights
June 30, 2007
(UNAUDITED)
Nonperforming Assets and Net Charge-offs
- -------------------------------------------
As of and for the three months ended June Bank Other Total
30, 2007
- ------------------------------------------- ------- ------- -------
Loans past due 90 days and still accruing $ 443 $ - $ 443
Nonaccrual loans 3,905 535 4,440
Other real estate owned and repossessed
assets 532 360 892
------- ------- -------
Total nonperforming assets $ 4,880 $ 895 $ 5,775
======= ======= =======
YTD net charge-offs $ 124 $ 498 $ 622
======= ======= =======
As of and for the three months ended June Bank Other Total
30, 2006
- ------------------------------------------- ------- ------- -------
Loans past due 90 days and still accruing $ 65 $ - $ 65
Nonaccrual loans 4,392 424 4,816
Other real estate owned and repossessed
assets 2,743 281 3,024
------- ------- -------
Total nonperforming assets $ 7,200 $ 705 $ 7,905
======= ======= =======
YTD net charge-offs $ 819 $ 394 $ 1,213
======= ======= =======
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
June 30, 2007
- ------------------------------------ ---------- --------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.19% 1.47% 0.21%
Nonperforming assets as a percentage
of total assets 0.17% 1.62% 0.20%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.30% 8.02% 1.42%
Allowance for loan losses as a
percentage of nonperforming loans 690.29% 545.98% 674.48%
YTD net charge-offs to average total
loans, net of unearned income 0.01% 1.42% 0.04%
As of and for the three months ended Bank Other Consolidated
June 30, 2006
- ------------------------------------ ---------- --------- ------------
Nonperforming loans as a percentage
of total loans, net of unearned
income 0.31% 1.32% 0.34%
Nonperforming assets as a percentage
of total assets 0.43% 1.95% 0.47%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.28% 7.90% 1.45%
Allowance for loan losses as a
percentage of nonperforming loans 410.68% 596.70% 426.84%
YTD net charge-offs to average total
loans, net of unearned income 0.06% 1.26% 0.09%
As of and for the year ended Bank Other Consolidated
December 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%
GREEN BANKSHARES, INC.
Condensed Average Balances, Interest Rates and Yields
June 30, 2007
Three Months Ended
June 30,
-----------------------------------------------------
2007 2006
-------------------------- --------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
--------- -------- ------- --------- -------- -------
Interest-earning
assets:
- -----------------
Loans 1,962,127 39,681 8.11% 1,426,984 27,781 7.81%
Investment
securities 154,110 2,090 5.44% 54,571 649 4.77%
Other short-term
investments 1,121 12 4.29% 4,476 59 5.29%
Fully taxable
equivalent
adjustment 114 38
--------- -------- ------- --------- -------- -------
Total interest-
earning assets2,117,358 41,897 7.94% 1,486,031 28,527 7.70%
--------- -------- ------- --------- -------- -------
Non-interest
earning assets 230,119 146,520
--------- ---------
Total assets 2,347,477 1,632,551
========= =========
Interest-bearing
liabilities:
- -----------------
Deposits:
- -----------------
Now accounts,
money market
and savings 693,235 4,865 2.81% 505,383 2,680 2.13%
Time deposits 874,466 10,147 4.65% 625,457 5,967 3.83%
--------- -------- ------- --------- -------- -------
Total interest
bearing-
deposits 1,567,701 15,012 3.84% 1,130,840 8,647 3.07%
--------- -------- ------- --------- -------- -------
Securities sold
under
repurchase and
short-term
borrowings 67,307 768 4.58% 34,783 397 4.58%
Notes payable 243,729 3,070 5.05% 123,199 1,672 5.44%
--------- -------- ------- --------- -------- -------
Total interest-
bearing
liabilities 1,878,737 18,850 4.02% 1,288,822 10,716 3.34%
--------- -------- ------- --------- -------- -------
Non-Interest
Bearing
Liabilities:
- -----------------
Demand Deposits 180,185 148,937
Other
Liabilities 36,566 18,396
--------- ---------
Total Non-
Interest
Bearing
Liabilities 216,751 167,333
--------- ---------
Total
liabilities 2,095,488 1,456,155
--------- ---------
Shareholders'
equity 251,989 176,396
Total
liabilities &
shareholders'
equity 2,347,477 1,632,551
========= =========
Net interest
income 23,047 17,811
======== ========
Interest rate
spread 3.91% 4.36%
======= =======
Net yield on
interest-earning
assets (net
interest margin) 4.37% 4.81%
======= =======
Balance 0 0
========= =========
Six Months Ended
June 30,
-----------------------------------------------------
2007 2006
-------------------------- --------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
--------- -------- ------- --------- -------- -------
Interest-earning
assets:
- -----------------
Loans 1,768,459 71,596 8.16% 1,409,788 53,881 7.71%
Investment
securities 103,176 2,798 5.47% 55,503 1,280 4.65%
Other short-term
investments 1,189 27 4.58% 3,928 95 4.88%
Fully taxable
equivalent
adjustment 146 77
--------- -------- ------- --------- -------- -------
Total interest-
earning assets1,872,824 74,567 8.03% 1,469,219 55,333 7.59%
--------- -------- ------- --------- -------- -------
Non-interest
earning assets 191,240 146,829
--------- ---------
Total assets 2,064,064 1,616,048
========= =========
Interest-bearing
liabilities:
- -----------------
Deposits:
- -----------------
Now accounts,
money market
and savings 617,363 8,411 2.75% 513,060 5,256 2.07%
Time deposits 774,411 17,754 4.62% 625,750 11,433 3.68%
--------- -------- ------- --------- -------- -------
Total interest
bearing-
deposits 1,391,774 26,165 3.79% 1,138,810 16,689 2.96%
--------- -------- ------- --------- -------- -------
Securities sold
under
repurchase and
short-term
borrowings 46,696 1,054 4.55% 28,267 604 4.31%
Notes payable 214,682 5,448 5.12% 112,474 3,004 5.39%
--------- -------- ------- --------- -------- -------
Total interest-
bearing
liabilities 1,653,152 32,667 3.98% 1,279,551 20,297 3.20%
--------- -------- ------- --------- -------- -------
Non-Interest
Bearing
Liabilities:
- -----------------
Demand Deposits 162,782 144,515
Other
Liabilities 27,820 17,856
--------- ---------
Total Non-
Interest
Bearing
Liabilities 190,602 162,371
--------- ---------
Total
liabilities 1,843,754 1,441,922
--------- ---------
Shareholders'
equity 220,310 174,126
Total
liabilities &
shareholders'
equity 2,064,064 1,616,048
========= =========
Net interest
income 41,900 35,036
======== ========
Interest rate
spread 4.04% 4.39%
======= =======
Net yield on
interest-earning
assets (net
interest margin) 4.51% 4.81%
======= =======
Balance 0 0
========= =========
GREEN BANKSHARES, INC.
Consolidated Financial Highlights
June 30, 2007
(UNAUDITED)
- ----------------------------------------------------------------------
June 30, 2007 December 31, 2006
------------------ ------------------
Loans Balance % Balance % %Change
- --------------------- ---------- ------- ---------- ------- ---------
Commercial $ 344,470 14.72% $ 258,998 16.70% 33.00%
Commercial real
estate 1,486,967 63.54% 921,190 59.38% 61.42%
Residential real
estate 405,494 17.33% 281,629 18.16% 43.98%
Consumer 100,441 4.29% 87,111 5.62% 15.30%
Other 2,818 0.12% 2,203 0.14% 27.92%
---------- ------- ---------- ------- ---------
2,340,190 100.00% 1,551,131 100.00% 50.87%
======= ======= =========
Less: Unearned
interest income (13,041) (11,502)
---------- ----------
Total $2,327,149 $1,539,629
========== ==========
Loan Balances by Geographical Region and Operating Subsidiaries
- ----------------------------------------------------------------------
June 30, 2007 December 31, 2006
------------------ ------------------
Loan % to Loan % to
Total Total
Balance Loans Balance Loans %Change
---------- ------- ---------- ------- ---------
Northeastern
Tennessee Region(1) $ 495,117 21.28% $ 465,567 30.24% 6.35%
East Tennessee Region 728,404 31.30% 625,632 40.64% 16.43%
Middle Tennessee
Region 1,067,197 45.86% 414,379 26.91% 157.54%
GCB Acceptance
Corporation 15,198 0.65% 13,444 0.87% 13.05%
Superior Financial
Services, Inc. 21,233 0.91% 20,607 1.34% 3.04%
---------- ------- ---------- ------- ---------
Totals $2,327,149 100.00% $1,539,629 100.00% 51.15%
========== ======= ========== ======= =========
(1) Includes one branch located in Southwestern Virginia and one
branch located in Northwestern North Carolina
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
June 30, 2007 December 31, 2006
------------------ ------------------
Deposits Balance % Balance % %Change
- --------------------- ---------- ------- ---------- ------- ---------
Non-interest bearing
demand $ 218,556 10.56% $ 152,634 11.45% 43.19%
Interest bearing
demand 522,685 25.25% 304,828 22.88% 71.47%
Money market and
savings 248,160 11.99% 194,068 14.56% 27.87%
Retail time 548,683 26.51% 445,816 33.46% 23.07%
Jumbo time 531,665 25.69% 235,159 17.65% 126.09%
---------- ------- ---------- ------- ---------
Total $2,069,749 100.00% $1,332,505 100.00% 55.33%
========== ======= ========== ======= =========
Deposit Balances by Geographical Region and Operating Subsidiaries
- ----------------------------------------------------------------------
June 30, 2007 December 31, 2006
------------------ ------------------
Balance % Balance % %Change
---------- ------- ---------- ------- ---------
Northeastern
Tennessee Region(1) $ 716,169 34.60% $ 613,257 46.02% 16.78%
East Tennessee Region 279,919 13.52% 281,094 21.10% -0.42%
Middle Tennessee
Region 1,073,661 51.88% 438,154 32.88% 145.04%
GCB Acceptance
Corporation - 0.00% - 0.00% -
Superior Financial
Services, Inc. - 0.00% - 0.00% -
---------- ------- ---------- ------- ---------
$2,069,749 100.00% $1,332,505 100.00% 55.33%
========== ======= ========== ======= =========
(1) Includes one branch located in Southwestern Virginia and one
branch located in Northwestern North Carolina
- ----------------------------------------------------------------------
CONTACT: Green Bankshares, Inc.
James E. Adams
Executive Vice President and Chief Financial Officer
423-278-3050