Printer Friendly
The Free Library
23,421,980 articles and books


Green Bankshares Reports Record Third Quarter Earnings, up 23%.

GREENEVILLE, Tenn. -- 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.
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Article Type:Financial report
Date:Oct 22, 2007
Words:1314
Previous Article:Inspired Technologies Obtains FDA 510(k) Clearance for the VIAspire(TM) Oxygen Portable.
Next Article:Willis Resolves Class Action Settlement.
Topics:



Related Articles
United American Bank Reports Third Quarter Financial Results.
Farmers National Banc Corp. Reports Earnings for Third Quarter 2007.
TSYS Reports 26.7% Increase in Net Income for Third Quarter 2007.
WGNB Corp. Announces Third Quarter Earnings.
Colonial BancGroup Announces Record Earnings of $0.45 Per Diluted Share for the Third Quarter of 2007.
East Penn Financial Corporation Announces Third Quarter Earnings.
Silver State Bancorp Reports Record Third Quarter Net Income.
TCF Reports Third Quarter Earnings and EPS ($.48).
Susquehanna Bancshares, Inc. Announces Third Quarter Results.
UMB Financial Corporation Reports Third Quarter Earnings of $21.5 Million.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters