Green Bankshares Reports Record Third Quarter Earnings, up 23%.
GREENEVILLE, Tenn. -- Green Bankshares, Inc. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 di·lute
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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 Profitability ratios
Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. ."
For the third quarter, Return on Average Assets (ROA ROA
See: Return on assets
See: Right of accumulation
See return on 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 cur·tail
tr.v. cur·tailed, cur·tail·ing, cur·tails
To cut short or reduce. See Synonyms at shorten.
[Middle English curtailen, to restrict 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 A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. relative to loans, net of unearned income Unearned Income
Any income that comes from investments and other sources unrelated to employment services.
Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. , 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 Shareholders' Equity
A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. 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 “Middle Tennessee” redirects here. For the university in Murfreesboro, see Middle Tennessee State University.
Middle Tennessee is a distinct portion of the state of Tennessee, delineated according to law as well as custom. , one branch each in Bristol, Virginia Bristol is an independent city in Virginia, bounded by Washington County, Virginia and Sullivan County, Tennessee.
As of the 2000 census, the city had a total population of 17,367. , and Hot Springs, North Carolina Hot Springs is a town in Madison County, North Carolina, United States. The population was 645 at the 2000 census. Geography
Hot Springs is located at (35.895577, -82.831023)GR1. , and a wealth management office in Gallatin, Tennessee Gallatin is a city in Sumner County, Tennessee, United States. At the 2000 census, the population was 23,230. The city, named for U.S. Secretary of the Treasury Albert Gallatin, was established and made the county seat of Sumner CountyGR6 in 1802. . In addition, GreenBank also conducts separate businesses through three wholly owned subsidiaries Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. : Superior Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. , Inc., a consumer finance company; GCB GCB Gaming Control Board
GCB Guyana Cricket Board
GCB Gas Circuit Breaker
GCB Groupement des Cartes Bancaires (French credit card data processor)
GCB General Council of the Bar of South Africa
GCB Grand Cross of the Bath 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 forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of and are furnished pursuant to the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the year ended December 31, 2006, and Quarterly Report on Form 10-Q Form 10-Q
See 10-Q. for the quarter ended June 30, 2007. The Company undertakes no obligation to update forward-looking statements.
[TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED]