EXHIBIT 99.1
Green Bankshares Reports Record Third Quarter Earnings, up 23%
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 22, 2007--Green
Bankshares, Inc. (NASDAQ: GRNB), the second largest bank holding
company headquartered in the State of Tennessee, today announced
record earnings for the third quarter and nine-month period ended
September 30, 2007. On a diluted basis, third quarter 2007 earnings
increased 23% to $0.69 from $0.56 in the same quarter a year ago,
while for the first nine months, earnings rose almost 16% to $1.89
from the previous record level of $1.63 set in the comparable period
of 2006. Year-to-date earnings were affected modestly by expenses
associated with the Company's acquisition of Civitas BankGroup, which
closed during the second quarter of this year, along with costs
incurred in connection with the strategic initiative to re-brand all
of the Company's banking operations under the GreenBank name.
Net income for the third quarter increased over 62% to $8,914,000
compared with $5,509,000 in the year-earlier quarter. For the current
nine-month period, earnings reached $21,616,000, up more than 34% from
$16,088,000 in the comparable 2006 period.
Commenting on the Company's report, Stan Puckett, Chairman and
Chief Executive Officer, said, "We are pleased with our third quarter
performance, which is the direct result of the 846 talented and
dedicated GreenBank associates. This quarter also represents the first
interim reporting period that fully reflects the Civitas acquisition
without the expenses associated with the assimilation process. These
results reflect record levels of core earnings, underscoring our
continued strong operating performance and driving solid profitability
ratios."
For the third quarter, Return on Average Assets (ROA) improved to
1.22% from 1.21% in the second quarter of 2007, compared with 1.32% in
the third quarter of 2006. Return on Average Equity (ROE) was 11.08%
in the current quarter, down slightly from an ROE of 11.25% in the
second quarter of this year and 12.22% in the third quarter of last
year, due to the issuance of additional shares in the Civitas
acquisition.
Puckett further noted, "With the robust organic loan growth
experienced during both the first and second quarters of this year, we
elected to curtail loan expansion during the third quarter to better
manage balance sheet growth and avoid placing undue pressure on net
interest margins. With these efforts, our loan portfolio declined
modestly from second quarter 2007 levels, but was still more than 56%
ahead of the third quarter of 2006."
The Company's credit quality remained strong in the third quarter
as non-performing loans relative to loans, net of unearned income,
totaled 0.26% versus 0.21% in the second quarter of 2007 and 0.33% in
the year-earlier quarter. Net charge-offs in the third quarter totaled
0.07% of average loans versus 0.04% in the second quarter of 2007 and
0.15% in the year-earlier period.
Net interest income for the third quarter increased 47% to
$27,293,000 from $18,530,000 in the year-earlier period, driven by a
59% or $863,000,000 increase in average loans outstanding versus the
third quarter last year, of which approximately $603,000,000 related
to the Company's May 2007 acquisition of Civitas. The quarter's
provision for loan losses declined 13% to $1,444,000 from $1,661,000
in the third quarter of last year, reflecting ongoing improvements in
asset quality, while the allowance for loan losses relative to loans,
net of unearned income, remained constant at 1.45%. Net interest
income increased 29% to $69,047,000 for the year-to-date period in
2007 compared with $53,489,000 in the same period last year. The
Company's provision for loan losses declined 7% to $3,677,000 in the
first nine months of 2007 from $3,969,000 in the year-earlier period.
Net interest margin declined 15 basis points to 4.22% in the third
quarter of 2007 versus 4.37% in the second quarter of 2007 and was
down 62 basis points from 4.84% in the year-earlier quarter. Net
interest margin for the first nine months of 2007 was 4.39%, down 43
basis points from 4.82% in the same period last year. The margin
compression experienced in the second and third quarters of 2007
primarily reflects the impact of higher-cost funding associated with
deposits acquired in the Civitas transaction.
Non-interest income increased 48% in the third quarter to
$7,688,000 from $5,191,000 in the same quarter last year, while
non-interest income for the year-to-date period rose 31% to
$19,570,000 from $14,974,000 in the comparable 2006 period. These
advances primarily reflected continued growth in the number of
customer checking accounts - 3,465 net new accounts in the third
quarter alone - in response to the Company's High Performance Checking
Account product.
Non-interest expense totaled $19,010,000 in the third quarter, up
45% from $13,136,000 in the same period a year ago. The Company's
efficiency ratio was 54.34% in the third quarter, reflecting an
improvement from 56.80% in the second quarter of 2007 and 55.38% in
the third quarter of 2006. Non-interest expenses increased 29% to
$49,761,000 in the first nine months of 2007 from $38,521,000 in the
year-earlier period. The Company's efficiency ratio for the first nine
months of 2007 improved to 56.15% versus 56.27% for the first nine
months of 2006.
Puckett concluded, "We expect fourth quarter earnings per diluted
share to be in the range of $0.69 to $0.71. Additionally, we
anticipate that 2008 earnings per diluted share will increase to the
range of $2.80 to $2.82."
At September 30, 2007, the Company's total assets increased 67% to
$2,955,747,000 from $1,772,654,000 at December 31, 2006, and were 71%
ahead of the $1,727,268,000 in total assets reported as of September
30, 2006. Net loans increased 51% to $2,326,990,000 at
September 30, 2007, from $1,539,629,000 at December 31, 2006, and were
56% higher than net loans of $1,493,878,000 at September 30, 2006.
Deposits increased 52% to $2,026,665,000 at September 30, 2007, from
$1,332,505,000 at December 31, 2006, and were 63% ahead of deposits of
$1,242,810,000 as of September 30, 2006. Total shareholders' equity
increased 74% to $321,174,000 at September 30, 2007, versus
$184,471,000 at December 31, 2006, and was 77% higher than total
shareholders' equity of $181,659,000 at September 30, 2006.
Greeneville, Tennessee-based Green Bankshares, Inc., with total
assets of approximately $2.956 billion, is the holding company for
GreenBank. GreenBank, which traces its origin to 1890, has 65 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 Report on Form 10-Q for the quarter ended June 30, 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 Nine Months Ended
--------------------------- -------------------
Sept. 30, June 30, Sept 30, Sept. 30, Sept. 30,
2007 2007 2006 2007 2006
--------- -------- -------- --------- ---------
Interest income $ 52,294 $ 41,783 $ 30,367 $126,715 $ 85,623
Interest expense 25,001 18,850 11,837 57,668 32,134
--------- -------- -------- --------- ---------
Net interest income 27,293 22,933 18,530 69,047 53,489
Provision for loan
losses 1,444 1,259 1,661 3,677 3,969
--------- -------- -------- --------- ---------
Net interest income
after provision for
loan losses 25,849 21,674 16,869 65,370 49,520
Non-interest income 7,688 6,483 5,191 19,570 14,974
Non-interest expense 19,010 16,709 13,136 49,761 38,521
--------- -------- -------- --------- ---------
Income before income
taxes 14,527 11,448 8,924 35,179 25,973
Income taxes 5,613 4,362 3,415 13,563 9,885
--------- -------- -------- --------- ---------
Net income $ 8,914 $ 7,086 $ 5,509 $ 21,616 $ 16,088
========= ======== ======== ========= =========
Comprehensive income $ 11,167 $ 4,357 $ 5,672 $ 21,181 $ 16,259
========= ======== ======== ========= =========
Earnings per share:
Basic $ 0.69 $ 0.63 $ 0.56 $ 1.90 $ 1.64
========= ======== ======== ========= =========
Diluted $ 0.69 $ 0.62 $ 0.56 $ 1.89 $ 1.63
========= ======== ======== ========= =========
Weighted average
shares:
Basic 12,921 11,322 9,790 11,362 9,782
========= ======== ======== ========= =========
Diluted 13,009 11,396 9,900 11,455 9,893
========= ======== ======== ========= =========
Dividends declared per
share $ 0.13 $ 0.13 $ 0.12 $ 0.39 $ 0.36
========= ======== ======== ========= =========
Sept. 30, Dec. 31, Sept. 30,
2007 2006 2006
---------- ---------- ----------
Total assets $2,955,747 $1,772,654 $1,727,268
Cash and cash equivalents 101,098 70,640 69,478
Investment securities 251,024 47,340 52,796
Loans, net of unearned income 2,326,990 1,539,629 1,493,878
Allowance for loan losses 33,703 22,302 21,616
Deposits 2,026,665 1,332,505 1,242,810
Shareholders' equity 321,174 184,471 181,659
Tangible shareholders' equity (1) 159,772 145,931 142,848
Book value per share 24.85 18.80 18.54
Tangible book value per share (1) 12.36 14.87 14.58
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
GREEN BANKSHARES, INC.
Condensed Consolidated Balance Sheets
September 30, 2007, December 31, 2006 and September 30, 2006
(Dollars in thousands except share and per share data)
(Unaudited) (Unaudited)
September 30, December 31, September 30,
2007 2006 (1) 2006
------------- ------------ -------------
ASSETS
- --------------------------
Cash and due from banks $ 61,090 $ 44,657 $ 41,474
Federal funds sold & other 40,008 25,983 28,004
Securities available-for-
sale ("AFS") 237,907 37,740 43,142
Securities held-to-
maturity (with a market
value of $1,339, $2,544
and $2,674 on September
30, 2007, December 31,
2006 and September 30,
2006) 1,358 2,545 2,690
FHLB, Bankers Bank and
other stock, at cost 11,759 7,055 6,964
Loans held for sale 5,662 1,772 2,195
Loans, net of unearned
income 2,326,990 1,539,629 1,493,878
Allowance for loan losses (33,703) (22,302) (21,616)
Bank premises and
equipment, net of
accumulated depreciation 82,641 57,258 54,125
Goodwill and other
intangible assets 161,402 38,540 38,811
Other assets 60,633 39,777 37,601
------------- ------------ -------------
Total Assets $ 2,955,747 $ 1,772,654 $ 1,727,268
============= ============ =============
LIABILITIES AND
SHAREHOLDERS' EQUITY
- --------------------------
Deposits $ 2,026,665 $ 1,332,505 $ 1,242,810
Federal funds purchased 41,800 20,000 75,000
Repurchase agreements 108,375 22,165 22,601
FHLB advances and notes
payable 334,103 177,571 173,058
Subordinated debentures 88,662 13,403 13,403
Accrued interest payable
and other liabilities 34,968 22,539 18,737
------------- ------------ -------------
Total Liabilities 2,634,573 1,588,183 1,545,609
------------- ------------ -------------
SHAREHOLDERS' EQUITY
- --------------------------
Common Stock: $2 par
value, 20,000,000 shares
authorized; 12,924,529,
9,810,867 and 9,796,349
shares outstanding 25,850 19,622 19,593
Paid in Capital 184,959 71,828 71,542
Retained Earnings 110,929 93,150 90,723
Accumulated Other
Comprehensive Income
(Loss) (564) (129) (199)
------------- ------------ -------------
Total Shareholders'
Equity 321,174 184,471 181,659
------------- ------------ -------------
Total Liabilities &
Shareholders' Equity $ 2,955,747 $ 1,772,654 $ 1,727,268
============= ============ =============
(1) Derived from Audited Consolidated Financial Statements.
GREEN BANKSHARES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended September 30, 2007, June 30, 2007 and September 30,
2006 and Nine Months Ended September 30, 2007 and 2006
(Unaudited)
(Dollars in thousands except share and per share data)
Three Months Ended
----------------------------------------
September 30, June 30, September 30,
2007 2007 2006
------------- ---------- -------------
Interest Income:
- ----------------------------
Interest and Fees on Loans $ 48,630 $ 39,681 $ 29,600
Interest on Investment
Securities 3,642 2,090 752
Interest on Federal Funds
Sold and Interest-earning
Deposits 22 12 15
------------- ---------- -------------
Total Interest Income 52,294 41,783 30,367
------------- ---------- -------------
Interest Expense:
- ----------------------------
Interest on Deposits 17,812 15,012 8,828
Interest on Borrowings 7,189 3,838 3,009
------------- ---------- -------------
Total Interest Expense 25,001 18,850 11,837
------------- ---------- -------------
Net Interest Income 27,293 22,933 18,530
Provision for Loan Losses 1,444 1,259 1,661
------------- ---------- -------------
Net Interest Income after
Provision for Loan Losses 25,849 21,674 16,869
------------- ---------- -------------
Noninterest Income:
- ----------------------------
Service Charges,
Commissions and Fees 6,418 5,395 4,125
Other Income 1,270 1,088 1,066
------------- ---------- -------------
Total Noninterest Income 7,688 6,483 5,191
------------- ---------- -------------
Noninterest Expense:
- ----------------------------
Salaries and Benefits 9,753 8,472 6,768
Occupancy and Furniture
and Equipment Expense 2,852 2,626 2,046
Other Expenses 6,405 5,611 4,322
------------- ---------- -------------
Total Noninterest Expense 19,010 16,709 13,136
------------- ---------- -------------
Income Before Income Taxes 14,527 11,448 8,924
Income Taxes 5,613 4,362 3,415
------------- ---------- -------------
Net Income $ 8,914 $ 7,086 $ 5,509
============= ========== =============
Comprehensive Income $ 11,167 $ 4,357 $ 5,672
============= ========== =============
Per Share of Common Stock:
- ----------------------------
Basic Earnings $0.69 $0.63 $0.56
============= ========== =============
Diluted Earnings $0.69 $0.62 $0.56
============= ========== =============
Dividends $0.13 $0.13 $0.12
============= ========== =============
Weighted Average Shares
Outstanding:
- ----------------------------
Basic 12,921,240 11,321,822 9,790,058
============= ========== =============
Diluted 13,008,733 11,395,518 9,900,396
============= ========== =============
Nine Months Ended
----------------------------
September 30, September 30,
2007 2006
------------- -------------
Interest Income:
- ----------------------------------------
Interest and Fees on Loans $ 120,226 $ 83,481
Interest on Investment Securities 6,440 2,032
Interest on Federal Funds Sold and
Interest-earning
Deposits 49 110
------------- -------------
Total Interest Income 126,715 85,623
------------- -------------
Interest Expense:
- ----------------------------------------
Interest on Deposits 43,977 25,517
Interest on Borrowings 13,691 6,617
------------- -------------
Total Interest Expense 57,668 32,134
------------- -------------
Net Interest Income 69,047 53,489
Provision for Loan Losses 3,677 3,969
------------- -------------
Net Interest Income after Provision
for Loan Losses 65,370 49,520
------------- -------------
Noninterest Income:
- ----------------------------------------
Service Charges, Commissions and Fees 16,102 11,357
Other Income 3,468 3,617
------------- -------------
Total Noninterest Income 19,570 14,974
------------- -------------
Noninterest Expense:
- ----------------------------------------
Salaries and Benefits 25,683 19,425
Occupancy and Furniture and Equipment
Expense 7,574 6,155
Other Expenses 16,504 12,941
------------- -------------
Total Noninterest Expense 49,761 38,521
------------- -------------
Income Before Income Taxes 35,179 25,973
Income Taxes 13,563 9,885
------------- -------------
Net Income $ 21,616 $ 16,088
============= =============
Comprehensive Income $ 21,181 $ 16,259
============= =============
Per Share of Common Stock:
- ----------------------------------------
Basic Earnings $1.90 $1.64
============= =============
Diluted Earnings $1.89 $1.63
============= =============
Dividends $0.39 $0.36
============= =============
Weighted Average Shares Outstanding:
- ----------------------------------------
Basic 11,362,422 9,782,255
============= =============
Diluted 11,455,389 9,893,417
============= =============
GREEN BANKSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
September 30, December 31, %
2007 2006 Change
------------- ------------ -------
Financial Condition Data:
- ------------------------------
Assets $ 2,955,747 $ 1,772,654 66.74%
Loans, net of unearned
income 2,326,990 1,539,629 51.14%
Cash and investments 312,114 91,997 239.27%
Federal funds sold 40,008 25,983 53.98%
Deposits 2,026,665 1,332,505 52.09%
Federal funds purchased 41,800 20,000 -
FHLB advances and notes
payable 334,103 177,571 88.15%
Subordinated debentures 88,662 13,403 561.51%
Federal funds purchased and
repurchase agreements 108,375 22,165 388.95%
Shareholders' equity 321,174 184,471 74.11%
Tangible shareholders'
equity (1) 159,772 145,931 9.47%
Ratios:
- ------------------------------
Book value per share $24.85 $18.80 32.18%
Tangible book value per
share (1) $12.36 $14.87 -16.88%
Average equity to average
assets 10.80% 10.78% 0.19%
Dividend payout ratio 20.53% 29.49%(2) -30.40%
(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
September 30,
----------------------
2007 2006 % Change
---------- ---------- --------
Operating Data:
- -------------------------------------
Total Interest Income $ 52,294 $ 30,367 72.21%
Total Interest Expense 25,001 11,837 111.21%
---------- ---------- --------
Net Interest Income 27,293 18,530 47.29%
Provision for Loan Losses 1,444 1,661 -13.06%
---------- ---------- --------
Net Interest Income After
Provision for Loan Losses 25,849 16,869 53.23%
Non-Interest Income 7,688 5,191 48.10%
Non-Interest Expense 19,010 13,136 44.72%
---------- ---------- --------
Income Before Income Taxes 14,527 8,924 62.79%
---------- ---------- --------
Income Tax Expense 5,613 3,415 64.36%
---------- ---------- --------
Net Income $ 8,914 $ 5,509 61.81%
========== ========== ========
Comprehensive Income $ 11,167 $ 5,672 96.88%
========== ========== ========
Per Share of Common Stock:
- -------------------------------------
Basic Earnings $0.69 $0.56 23.21%
========== ========== ========
Diluted Earnings $0.69 $0.56 23.21%
========== ========== ========
Dividends $0.13 $0.12 8.33%
========== ========== ========
Weighted Average Shares Outstanding:
- -------------------------------------
Basic 12,921,240 9,790,058
========== ==========
Diluted 13,008,733 9,900,396
========== ==========
Nine Months Ended
September 30,
----------------------
2007 2006 % Change
---------- ---------- --------
Operating Data:
- -------------------------------------
Total Interest Income $ 126,715 $ 85,623 47.99%
Total Interest Expense 57,668 32,134 79.46%
---------- ---------- --------
Net Interest Income 69,047 53,489 29.09%
Provision for Loan Losses 3,677 3,969 -7.36%
---------- ---------- --------
Net Interest Income After
Provision for Loan Losses 65,370 49,520 32.01%
Non-Interest Income 19,570 14,974 30.69%
Non-Interest Expense 49,761 38,521 29.18%
---------- ---------- --------
Income Before Income Taxes 35,179 25,973 35.44%
---------- ---------- --------
Income Tax Expense 13,563 9,885 37.21%
---------- ---------- --------
Net Income $ 21,616 $ 16,088 34.36%
========== ========== ========
Comprehensive Income $ 21,181 $ 16,259 30.27%
========== ========== ========
Per Share of Common Stock:
- -------------------------------------
Basic Earnings $1.90 $1.64 15.85%
========== ========== ========
Diluted Earnings $1.89 $1.63 15.95%
========== ========== ========
Dividends $0.39 $0.36 8.33%
========== ========== ========
Weighted Average Shares Outstanding:
- -------------------------------------
Basic 11,362,422 9,782,255
========== ==========
Diluted 11,455,389 9,893,417
========== ==========
Three Months Ended
---------------------------- Nine Months Ended
Sept. 30,
Sept. 30, Dec. 31, Sept. 30, -----------------
2007 2006 2006 2007 2006
--------- -------- --------- -------- --------
Key Financial Ratios:
- ----------------------
Return on Average
Assets 1.22% 1.20% 1.32% 1.23% 1.31%
Return on Average
Shareholders'
Equity 11.08% 11.16% 12.22% 11.40% 12.17%
Return on Average
Tangible
Shareholders'
Equity (1) 22.32% 14.10% 15.59% 18.59% 15.66%
Interest Rate Spread 3.83% 4.16% 4.35% 3.95% 4.37%
Net Interest Margin 4.22% 4.66% 4.84% 4.39% 4.82%
Efficiency Ratio 54.34% 58.73% 55.38% 56.15% 56.27%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
September 30, December 31, September 30,
2007 2006 2006
------------- ------------ -------------
Asset Quality Ratios:
- -----------------------------
Nonperforming Loans as a
Percentage of Total
Loans, net of Unearned
Income 0.26% 0.23% 0.33%
Nonperforming Assets as a
Percentage of Total
Assets 0.26% 0.29% 0.42%
Allowance for Loan Losses
as a Percentage of Total
Loans, net of Unearned
Income 1.45% 1.45% 1.45%
Allowance for Loan Losses
as a Percentage of
Nonperforming Loans 558.18% 635.93% 442.23%
Net Charge-Offs to Average
Total Loans, Net of
Unearned Income 0.07% 0.20% 0.15%
GREEN BANKSHARES, INC.
Consolidated Financial Highlights
September 30, 2007
(UNAUDITED)
Nonperforming Assets and Net
Charge-offs
- ----------------------------------
As of and for the three months
ended September 30, 2007 Bank Other Total
- ---------------------------------- --------- --------- ------------
Loans past due 90 days and still
accruing $ 168 $ - $ 168
Nonaccrual loans 5,342 528 5,870
Other real estate owned and
repossessed assets 1,055 455 1,510
--------- --------- ------------
Total nonperforming assets $ 6,565 $ 983 $ 7,548
========= ========= ============
YTD net charge-offs $ 423 $ 875 $ 1,298
========= ========= ============
As of and for the three months
ended September 30, 2006 Bank Other Total
- ---------------------------------- --------- --------- ------------
Loans past due 90 days and still
accruing $ 51 $ 14 $ 65
Nonaccrual loans 4,304 519 4,823
Other real estate owned and
repossessed assets 2,207 227 2,434
--------- --------- ------------
Total nonperforming assets $ 6,562 $ 760 $ 7,322
========= ========= ============
YTD net charge-offs $ 1,448 $ 644 $ 2,092
========= ========= ============
As of and for the year 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
========= ========= ============
Net charge-offs $ 2,041 $ 903 $ 2,944
========= ========= ============
Asset Quality Ratios
- ----------------------------------
As of and for the three months
ended September 30, 2007 Bank Other Consolidated
- ---------------------------------- --------- --------- ------------
Nonperforming loans as a
percentage of total loans, net
of unearned income 0.24% 1.40% 0.26%
Nonperforming assets as a
percentage of total assets 0.22% 1.96% 0.26%
Allowance for loan losses as a
percentage of total loans, net
of unearned income 1.32% 8.01% 1.45%
Allowance for loan losses as a
percentage of nonperforming
loans 556.73% 573.30% 558.18%
YTD net charge-offs to average
total loans, net of unearned
income 0.02% 2.45% 0.07%
As of and for the three months
ended September 30, 2006 Bank Other Consolidated
- ---------------------------------- --------- --------- ------------
Nonperforming loans as a
percentage of total loans, net
of unearned income 0.29% 1.63% 0.33%
Nonperforming assets as a
percentage of total assets 0.38% 2.02% 0.42%
Allowance for loan losses as a
percentage of total loans, net
of unearned income 1.28% 7.92% 1.45%
Allowance for loan losses as a
percentage of nonperforming
loans 436.81% 486.49% 442.23%
YTD net charge-offs to average
total loans, net of unearned
income 0.10% 2.04% 0.15%
As of and for the year 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%
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
September 30, 2007
Three Months Ended
September 30,
-----------------------------------------------------
2007 2006
-------------------------- --------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
--------- -------- ------- --------- -------- -------
Interest-earning
assets:
- ----------------
Loans (1) 2,327,498 48,631 8.29% 1,464,356 29,600 8.02%
Investment
securities 255,556 3,641 5.65% 57,226 752 5.21%
Other short-
term
investments 1,760 22 4.96% 1,168 15 5.10%
Fully taxable
equivalent
adjustment (2) 205 38
--------- -------- ------- --------- -------- -------
Total interest-
earning assets 2,584,814 52,499 8.06% 1,522,750 30,405 7.92%
--------- -------- ------- --------- -------- -------
Non-interest
earning assets 321,831 148,418
--------- ---------
Total assets 2,906,645 1,671,168
========= =========
Interest-bearing
liabilities:
- ----------------
Deposits:
- ----------------
Now accounts,
money market
and savings 701,472 4,381 2.48% 467,112 2,447 2.08%
Time deposits 1,120,908 13,431 4.75% 630,258 6,381 4.02%
--------- -------- ------- --------- -------- -------
Total interest
bearing-
deposits 1,822,380 17,812 3.88% 1,097,370 8,828 3.19%
--------- -------- ------- --------- -------- -------
Securities sold
under
repurchase and
short-term
borrowings 147,589 1,777 4.78% 42,775 531 4.93%
Notes payable 375,618 5,412 5.72% 178,786 2,478 5.50%
--------- -------- ------- --------- -------- -------
Total interest-
bearing
liabilities 2,345,587 25,001 4.23% 1,318,931 11,837 3.56%
--------- -------- ------- --------- -------- -------
Non-Interest
Bearing
Liabilities:
- ----------------
Demand Deposits 208,093 152,035
Other
Liabilities 33,893 19,868
--------- ---------
Total Non-
Interest
Bearing
Liabilities 241,986 171,903
--------- ---------
Total
liabilities 2,587,573 1,490,834
--------- ---------
Shareholders'
equity 319,072 180,334
Total
liabilities &
shareholders'
equity 2,906,645 1,671,168
========= =========
Net interest
income 27,498 18,568
======== ========
Interest rate
spread 3.83% 4.36%
======= =======
Net yield on
interest-
earning assets
(net interest
margin) 4.22% 4.84%
======= =======
Nine Months Ended
September 30,
-----------------------------------------------------
2007 2006
-------------------------- --------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
--------- -------- ------- --------- -------- -------
Interest-earning
assets:
- ----------------
Loans (1) 1,956,853 120,226 8.21% 1,428,177 83,481 7.82%
Investment
securities 154,630 6,440 5.57% 56,084 2,032 4.84%
Other short-
term
investments 1,279 49 5.12% 2,998 110 4.91%
Fully taxable
equivalent
adjustment (2) 351 115
--------- -------- ------- --------- -------- -------
Total interest-
earning assets 2,112,762 127,066 8.04% 1,487,259 85,738 7.71%
--------- -------- ------- --------- -------- -------
Non-interest
earning assets 235,905 147,364
--------- ---------
Total assets 2,348,667 1,634,623
========= =========
Interest-bearing
liabilities:
- ----------------
Deposits:
- ----------------
Now accounts,
money market
and savings 645,708 12,792 2.65% 497,576 7,703 2.07%
Time deposits 891,179 31,185 4.68% 627,269 17,814 3.80%
--------- -------- ------- --------- -------- -------
Total interest
bearing-
deposits 1,536,887 43,977 3.83% 1,124,845 25,517 3.03%
--------- -------- ------- --------- -------- -------
Securities sold
under
repurchase and
short-term
borrowings 80,697 2,831 4.69% 33,156 1,135 4.58%
Notes payable 268,917 10,860 5.40% 134,820 5,482 5.44%
--------- -------- ------- --------- -------- -------
Total interest-
bearing
liabilities 1,886,501 57,668 4.09% 1,292,821 32,134 3.32%
--------- -------- ------- --------- -------- -------
Non-Interest
Bearing
Liabilities:
- ----------------
Demand Deposits 178,051 147,049
Other
Liabilities 30,522 18,535
--------- ---------
Total Non-
Interest
Bearing
Liabilities 208,573 165,584
--------- ---------
Total
liabilities 2,095,074 1,458,405
--------- ---------
Shareholders'
equity 253,593 176,218
Total
liabilities &
shareholders'
equity 2,348,667 1,634,623
========= =========
Net interest
income 69,398 53,604
======== ========
Interest rate
spread 3.95% 4.38%
======= =======
Net yield on
interest-
earning assets
(net interest
margin) 4.39% 4.82%
======= =======
(1) Average loan balances included nonaccrual loans. Interest income
collected on nonaccrual loans has been included.
(2) Fully Taxable Equivalent ("FTE") at the rate of 35%. The FTE basis
adjusts for the tax benefits of income on certain tax-exempt loans
and investments using the federal statutory rate of 35% for each
period presented. The Company believes this measure to be the
preferred industry measurement of net interest income and provides
relevant comparison between taxable and non-taxable amounts.
GREEN BANKSHARES, INC.
Consolidated Financial Highlights
September 30, 2007
(UNAUDITED)
- ----------------------------------------------------------------------
September 30, December 31,
2007 2006
----------------- -----------------
Loans Balance % Balance % % Change
- ---------------------- --------- ------- --------- ------- --------
Commercial $ 318,726 13.62% $ 258,998 16.70% 23.06%
Commercial real estate 1,521,440 64.98% 921,190 59.38% 65.16%
Residential real
estate 400,719 17.12% 281,629 18.16% 42.29%
Consumer 98,214 4.20% 87,111 5.62% 12.75%
Other 1,761 0.08% 2,203 0.14% -20.06%
--------- ------- --------- ------- --------
2,340,860 100.00% 1,551,131 100.00% 50.91%
======= ======= ========
Less: Unearned
interest income (13,870) (11,502)
--------- ---------
Total $2,326,990 $1,539,629
========= =========
Loan Balances by Geographical Region and Operating Subsidiaries
- ----------------------------------------------------------------------
September 30, December 31,
2007 2006
----------------- -----------------
% to % to
Loan Total Loan Total
Balance Loans Balance Loans % Change
Northeastern Tennessee
Region (1) $ 499,292 21.46% $ 465,567 30.24% 7.24%
East Tennessee Region 751,553 32.30% 625,632 40.64% 20.13%
Middle Tennessee
Region 1,038,350 44.62% 414,379 26.91% 150.58%
GCB Acceptance
Corporation 15,647 0.67% 13,444 0.87% 16.39%
Superior Financial
Services, Inc. 22,148 0.95% 20,607 1.34% 7.48%
--------- ------- --------- ------- --------
Totals $2,326,990 100.00% $1,539,629 100.00% 51.14%
========= ======= ========= ======= ========
(1) Includes one branch located in Southwestern Virginia and one
branch located in Northwestern North Carolina
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
September 30, December 31,
2007 2006
----------------- -----------------
Deposits Balance % Balance % % Change
- ---------------------- --------- ------- --------- ------- --------
Non-interest bearing
demand $ 211,675 10.56% $ 152,634 11.45% 38.68%
Interest bearing
demand 441,956 25.25% 304,828 22.88% 44.99%
Money market and
savings 215,598 11.99% 194,068 14.56% 11.09%
Retail time 578,088 26.51% 445,816 33.46% 29.67%
Jumbo time 579,348 25.69% 235,159 17.65% 146.36%
--------- ------- --------- ------- --------
Total $2,026,665 100.00% $1,332,505 100.00% 52.09%
========= ======= ========= ======= ========
Deposit Balances by Geographical Region and Operating Subsidiaries
- ----------------------------------------------------------------------
September 30, December 31,
2007 2006
----------------- -----------------
Balance % Balance % % Change
--------- ------- --------- ------- --------
Northeastern Tennessee
Region (1) $ 777,674 38.37% $ 613,257 46.02% 26.81%
East Tennessee Region 265,450 13.10% 281,094 21.10% -5.57%
Middle Tennessee
Region 983,541 48.53% 438,154 32.88% 124.47%
GCB Acceptance
Corporation - 0.00% - 0.00% -
Superior Financial
Services, Inc. - 0.00% - 0.00% -
--------- ------- --------- ------- --------
$2,026,665 100.00% $1,332,505 100.00% 52.09%
========= ======= ========= ======= ========
(1) Includes one branch located in Southwestern Virginia and one
branch located in Northwestern North Carolina
- ----------------------------------------------------------------------
CONTACT: Green Bankshares, Inc.
James E. Adams, 423-278-3050
Executive Vice President and Chief Financial Officer