Greene County Bancshares (NASDAQ:GCBS)
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Greene County Bancshares, Inc. (NASDAQ: GCBS), the third
largest bank holding company headquartered in the State of Tennessee,
today announced continued growth in the second quarter and first six
months of 2006, highlighted by year-over-year increases in earnings
per diluted share for the periods of 15% and 24%, respectively. The
Company's record quarterly and first-half results primarily reflected
ongoing growth in net interest income and a disciplined approach to
expense control, coupled with continued strong asset quality measures.
Rapid growth in core non-interest income also contributed to the
Company's higher results in 2006.
For the second quarter of 2006, net income increased 48% to
$5,483,000 or $0.55 per diluted share compared with $3,714,000 or
$0.48 per diluted share in the year-earlier period. The
disproportionate increase in per share earnings reflects the issuance
of approximately 2.2 million shares of new common stock in the fourth
quarter of 2005 to support the Company's expansion initiatives. On a
linked-quarter basis, second quarter 2006 net income and diluted
earnings per share rose 8% and 6%, respectively, from the first
quarter of 2006.
Return on Average Assets (ROAA) improved notably compared with the
year-earlier period as well as the linked quarter. The Company's ROAA
improved to 1.34% in the second quarter of 2006 from 1.27% in the
first quarter of 2006 and 1.11% in the year-earlier quarter. Return on
Average Equity, reflecting the issuance of new stock in the fourth
quarter of 2005, was 12.43% in the second quarter of 2006, up from
11.86% in the first quarter of 2006, but below 13.11% in the second
quarter of 2005. Similarly, Return on Average Tangible Equity improved
to 15.99% in the second quarter of 2006 from 15.41% in the first
quarter of 2006, but was slightly below 16.53% in the year-earlier
quarter.
Net interest income for the second quarter increased 26% to
$17,773,000 from $14,072,000 in the year-earlier period, driven by a
25% increase in average loans outstanding. The quarter's provision for
loan losses increased 17% to $1,244,000 from $1,060,000 in the second
quarter of last year, commensurate with the Company's continued loan
growth.
Commenting on the second quarter results, Stan Puckett, Chairman
and Chief Executive Officer, said, "We are encouraged with the results
of the second quarter. Credit quality remained strong with net
charge-offs at 0.17% of average total loans versus 0.21% in the first
quarter of 2006 and 0.27% in the year-earlier period. Quarterly loan
growth was solid at 10% on an annualized basis, reflecting the
economic vitality of our key markets. Expense control remains a
priority as evidenced by the continued improvement in our efficiency
ratio to 55.61% from 57.55% in the first quarter of 2006 and 59.44% in
the same period of 2005. Non-interest income was 45% higher than in
the second quarter last year and it now comprises 22% of total revenue
versus 20% in the second quarter of the previous year.
"Lastly, net interest margin remained constant in the second
quarter at 4.80% versus the first quarter of 2006, despite the
challenging interest rate environment, as we continued to optimize our
funding mix," Puckett continued. "Compared with the same period a year
ago net interest margin widened by 23 basis points. Nevertheless,
margin compression remains a concern due to the keenly competitive
loan and deposit environments, and we anticipate some pressure on the
margin for the second half of the year."
For the six months ended June 30, 2006, net income increased 59%
to $10,579,000 or $1.07 per diluted share from $6,649,000 or $0.86 per
diluted share in the first half of 2005. Net interest income increased
28% to $34,959,000 for the first half of 2006 compared with
$27,399,000 in the same period last year.
At June 30, 2006, the Company's total assets increased 3% to
$1,665,630,000 from $1,619,989,000 at December 31, 2005, and were 21%
ahead of the $1,374,194,000 in total assets reported as of June 30,
2005. Net loans increased 4% to $1,437,935,000 at June 30, 2006, from
$1,378,642,000 at December 31, 2005, and were 24% higher than net
loans of $1,158,644,000 at June 30, 2005. Deposits declined slightly
to $1,283,606,000 at June 30, 2006, from $1,295,879,000 at December
31, 2005, but were 12% ahead of deposits of $1,148,434,000 as of June
30, 2005. Total shareholders' equity increased 5% to $176,889,000 at
June 30, 2006, versus $168,021,000 at December 31, 2005, and was 56%
higher than total shareholders' equity of $113,486,000 at June 30,
2005.
Concluding, Puckett added, "We are pleased with the Company's
performance in the first half and believe it represents a positive
step toward achieving our goal of being a high-performance,
high-growth banking company."
Greeneville, Tennessee-based Greene County Bancshares, Inc., with
total assets of approximately $1.7 billion, is the holding company for
Greene County Bank. Greene County Bank, founded in 1890, now has 48
branches throughout East and Middle Tennessee, one branch in Bristol,
Virginia, one branch in western North Carolina, and a trust services
office in Lebanon, Tennessee. Greene County Bank does business in
Washington County, Tennessee, as Washington County Bank; in Blount
County and Knox County, Tennessee, as American Fidelity Bank; in
Montgomery County, Tennessee, as Clarksville Community Bank; in Sumner
County, Tennessee, as First Independent Bank; in Rutherford County,
Tennessee, as Rutherford Bank and Trust; in Sullivan County,
Tennessee, as Sullivan County Bank and First Bristol Bank; in Hamblen
County, Tennessee, as Hamblen County Bank; in McMinn County,
Tennessee, as Bank of Athens and Bank of Niota; in Hawkins County,
Tennessee, as Hawkins County Bank and Bank of Bulls Gap; in Lawrence
County, Tennessee, as Bank of Lawrence County; in Cocke County,
Tennessee, as Cocke County Bank; in Loudon County, Tennessee, as
Community Bank of Loudon County; in Monroe County, Tennessee, as
Community Trust Bank; in the City of Bristol, Virginia, as First
Bristol Bank; in Davidson County and Williamson County, Tennessee, as
Middle Tennessee Bank & Trust; and in Wilson County, Tennessee, as
President's Trust. In addition, Greene County Bank 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 subprime
automobile lending; and Fairway Title Co., a title insurance company.
This news release may contain forward-looking statements regarding
Greene County Bancshares, Inc., as defined in Section 21E of the
Securities Exchange Act of 1934. 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. A discussion of factors
that could cause actual results to differ materially from those
expressed in the forward-looking statements is included in the Greene
County Bancshares, Inc. filings with the Securities and Exchange
Commission.
-0-
*T
GREENE COUNTY BANCSHARES, 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,
2006 2006 2005 2006 2005
------- ------- ------- ------- -------
Interest income $28,489 $26,767 $20,703 $55,256 $39,438
Interest expense 10,716 9,581 6,631 20,297 12,039
------- ------- ------- ------- -------
Net interest income 17,773 17,186 14,072 34,959 27,399
Provision for
loan losses 1,244 1,064 1,060 2,308 2,682
------- ------- ------- ------- -------
Net interest income
after provision
for loan losses 16,529 16,122 13,012 32,651 24,717
Non-interest income 5,028 4,755 3,463 9,783 6,639
Non-interest expense 12,679 12,706 10,422 25,385 20,697
------- ------- ------- ------- -------
Income before income
taxes 8,878 8,171 6,053 17,049 10,659
Income taxes 3,395 3,075 2,339 6,470 4,010
------- ------- ------- ------- -------
Net income $ 5,483 $ 5,096 $ 3,714 $10,579 $ 6,649
======= ======= ======= ======= =======
Comprehensive income $ 5,498 $ 5,089 $ 3,732 $10,587 $ 6,554
======= ======= ======= ======= =======
Earnings per share:
Basic $ 0.56 $ 0.52 $ 0.49 $ 1.08 $ 0.87
======= ======= ======= ======= =======
Diluted $ 0.55 $ 0.52 $ 0.48 $ 1.07 $ 0.86
======= ======= ======= ======= =======
Weighted average
shares:
Basic 9,786 9,771 7,651 9,778 7,650
======= ======= ======= ======= =======
Diluted 9,898 9,871 7,746 9,892 7,745
======= ======= ======= ======= =======
Dividends declared
per share $ 0.12 $ 0.12 $ 0.12 $ 0.24 $ 0.24
======= ======= ======= ======= =======
June 30, Dec. 31, June 30,
2006 2005 2005
---------- ---------- ----------
Total assets $1,665,630 $1,619,989 $1,374,194
Cash and cash
equivalents 63,974 74,523 81,936
Investment securities 54,076 58,736 61,035
Loans, net of
unearned interest 1,437,935 1,378,642 1,158,644
Allowance for loan
losses 20,834 19,739 16,880
Deposits 1,283,606 1,295,879 1,148,434
Shareholders' equity 176,889 168,021 113,486
Tangible shareholders'
equity 1 137,808 128,399 90,167
Book value per share 18.07 17.20 14.83
Tangible book value
per share 1 14.08 13.15 11.78
1 Tangible shareholders' equity is shareholders' equity less goodwill
and intangible assets.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Balance Sheets
June 30, 2006, December 31, 2005 and June 30, 2005
(Dollars in thousands except share and per share data)
(Unaudited) December (Unaudited)
June 30, 31, June 30,
2006 2005(a) 2005
------------ ----------- -----------
ASSETS
---------------------------------
Cash and due from banks $ 44,358 $ 46,136 $ 35,420
Federal funds sold & other 19,616 28,387 46,516
Securities available-for-sale
("AFS") 44,457 48,868 51,216
Securities held-to-maturity
(with a market value of $2,696,
$3,335 and $3,503 on June 30,
2006, December 31, 2005 and June
30, 2005) 2,740 3,379 3,480
FHLB, Bankers Bank and other
stock, at cost 6,879 6,489 6,339
Loans held for sale 2,054 2,686 1,057
Loans, net of unearned interest 1,437,935 1,378,642 1,158,644
Allowance for loan losses (20,834) (19,739) (16,880)
Bank premises and equipment, net
of accumulated depreciation 52,735 49,985 35,373
Goodwill and other intangible
assets 39,081 39,622 23,319
Other assets 36,609 35,534 29,710
------------ ----------- -----------
Total Assets $ 1,665,630 $ 1,619,989 $ 1,374,194
============ =========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
---------------------------------
Deposits $ 1,283,606 $ 1,295,879 $ 1,148,434
Federal funds purchased 26,000 - -
Repurchase agreements 25,133 17,498 16,426
FHLB advances and notes payable 123,281 105,146 70,509
Subordinated debentures 13,403 13,403 13,403
Accrued interest payable and
other liabilities 17,318 20,042 11,936
------------ ----------- -----------
Total Liabilities 1,488,741 1,451,968 1,260,708
------------ ----------- -----------
SHAREHOLDERS' EQUITY
---------------------------------
Common Stock: $2 par value,
15,000,000 shares authorized;
9,788,145, 9,766,336 and
7,651,016 shares outstanding 19,577 19,533 15,303
Paid in Capital 71,285 70,700 24,204
Retained Earnings 86,389 78,158 74,101
Accumulated Other Comprehensive
Income (Loss) (362) (370) (122)
------------ ----------- -----------
Total Shareholders' Equity 176,889 168,021 113,486
------------ ----------- -----------
Total Liabilities &
Shareholders' Equity $ 1,665,630 $ 1,619,989 $ 1,374,194
============ =========== ===========
(a) Derived from Audited Consolidated
Financial Statements.
GREENE COUNTY BANCSHARES, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
Three Months Ended June 30, 2006, March 31, 2006 and June 30, 2006 and
Six Months Ended June 30, 2006 and 2005
(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,
2006 2006 2005 2006 2005
---------- ---------- ---------- ---------- ----------
Interest Income:
-----------------
Interest and
Fees on Loans $ 27,781 $ 26,100 $ 19,851 $ 53,881 $ 37,930
Interest on
Investment
Securities 649 631 592 1,280 1,065
Interest on
Federal Funds
Sold and
Interest-
earning
Deposits 59 36 260 95 443
---------- ---------- ---------- ---------- ----------
Total Interest
Income 28,489 26,767 20,703 55,256 39,438
---------- ---------- ---------- ---------- ----------
Interest Expense:
-----------------
Interest on
Deposits 8,647 8,042 5,501 16,689 9,763
Interest on
Borrowings 2,069 1,539 1,130 3,608 2,276
---------- ---------- ---------- ---------- ----------
Total Interest
Expense 10,716 9,581 6,631 20,297 12,039
---------- ---------- ---------- ---------- ----------
Net Interest
Income 17,773 17,186 14,072 34,959 27,399
Provision for
Loan Losses 1,244 1,064 1,060 2,308 2,682
---------- ---------- ---------- ---------- ----------
Net Interest
Income after
Provision for
Loan Losses 16,529 16,122 13,012 32,651 24,717
---------- ---------- ---------- ---------- ----------
Noninterest
Income:
-----------------
Service
Charges,
Commissions
and Fees 4,001 3,231 2,836 7,232 4,978
Other Income 1,027 1,524 627 2,551 1,661
---------- ---------- ---------- ---------- ----------
Total
Noninterest
Income 5,028 4,755 3,463 9,783 6,639
---------- ---------- ---------- ---------- ----------
Noninterest
Expense:
-----------------
Salaries and
Benefits 6,266 6,391 5,099 12,657 10,344
Occupancy and
Furniture and
Equipment
Expense 2,050 2,059 1,774 4,109 3,513
Other Expenses 4,363 4,256 3,549 8,619 6,840
---------- ---------- ---------- ---------- ----------
Total
Noninterest
Expense 12,679 12,706 10,422 25,385 20,697
---------- ---------- ---------- ---------- ----------
Income Before
Income Taxes 8,878 8,171 6,053 17,049 10,659
Income Taxes 3,395 3,075 2,339 6,470 4,010
---------- ---------- ---------- ---------- ----------
Net Income $ 5,483 $ 5,096 $ 3,714 $ 10,579 $ 6,649
========== ========== ========== ========== ==========
Comprehensive
Income $ 5,498 $ 5,089 $ 3,732 $ 10,587 $ 6,554
========== ========== ========== ========== ==========
Per Share of
Common Stock:
-----------------
Basic Earnings $0.56 $0.52 $0.49 $1.08 $0.87
========== ========== ========== ========== ==========
Diluted
Earnings $0.55 $0.52 $0.48 $1.07 $0.86
========== ========== ========== ========== ==========
Dividends $0.12 $0.12 $0.12 $0.24 $0.24
========== ========== ========== ========== ==========
Weighted Average
Shares
Outstanding:
-----------------
Basic 9,785,936 9,770,555 7,650,884 9,778,288 7,649,982
========== ========== ========== ========== ==========
Diluted 9,897,987 9,870,691 7,745,985 9,891,817 7,745,130
========== ========== ========== ========== ==========
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
June 30, December 31, %
2006 2005 Change
---------- ---------- -------
Financial Condition Data:
---------------------------------
Assets $1,665,630 $1,619,989 2.82%
Loans, net of unearned
interest 1,437,935 1,378,642 4.30%
Cash and investments 98,434 104,872 -6.14%
Federal funds sold 19,616 28,387 -30.90%
Deposits 1,283,606 1,295,879 -0.95%
Federal funds purchased 26,000 - -
FHLB advances and notes payable 123,281 105,146 17.25%
Subordinated debentures 13,403 13,403 0.00%
Federal funds purchased and
repurchase agreements 25,133 17,498 43.63%
Shareholders' equity 176,889 168,021 5.28%
Tangible shareholders'
equity (1) 137,808 128,399 7.33%
Ratios:
---------------------------------
Book value per share $18.07 $17.20 5.06%
Tangible book value per
share (1) $14.08 $13.15 7.07%
Average equity to average
assets 10.78% 9.20% 17.17%
Dividend payout ratio 22.19% 37.38%(2)-40.64%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
(2) Includes special dividend of $.14 per share paid in December
2005.
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
--------------- --------------
2006 2005 % Change 2006 2005 % Change
---------------------------------------------------
Operating Data:
-----------------
Total Interest
Income $28,489 $20,703 37.61% $55,256 $39,438 40.11%
Total Interest
Expense 10,716 6,631 61.60% 20,297 12,039 68.59%
------ -------- ------- --------- ------- -------
Net Interest
Income 17,773 14,072 26.30% 34,959 27,399 27.59%
Provision for
Loan Losses 1,244 1,060 17.36% 2,308 2,682 -13.94%
------ -------- ------- --------- ------- -------
Net Interest
Income After
Provision for
Loan Losses 16,529 13,012 27.03% 32,651 24,717 32.10%
Non-Interest
Income 5,028 3,463 45.19% 9,783 6,639 47.36%
Non-Interest
Expense 12,679 10,422 21.66% 25,385 20,697 22.65%
------ -------- -------- --------- ------- -------
Income Before
Income Taxes 8,878 6,053 46.67% 17,049 10,659 59.95%
------ -------- ------- ---------- ------- -------
Income Tax
Expense 3,395 2,339 45.15% 6,470 4,010 61.35%
------ -------- ------- ---------- ------- -------
Net Income $5,483 $3,714 47.63% $10,579 $6,649 59.11%
====== ======== ======= ========== ======= =======
Comprehensive
Income $5,498 $3,732 47.32% $10,587 $6,554 61.53%
====== ======== ======= ========== ======= =======
Per Share of
Common Stock:
-----------------
Basic Earnings $0.56 $0.49 14.29% $1.08 $0.87 24.14%
====== ======== ======= ========== ======== =======
Diluted
Earnings $0.55 $0.48 14.58% $1.07 $0.86 24.42%
====== ======== ======= ========== ======= =======
Dividends $0.12 $0.12 0.00% $0.24 $0.24 0.00%
====== ======== ======= ========== ======= =======
Weighted Average Shares
Outstanding:
----------------------------
Basic 9,785,936 7,650,884 9,778,288 7,649,982
========== ========== ========== ==========
Diluted 9,897,987 7,745,985 9,891,817 7,745,130
========== ========== ========== ==========
----------------------------------------------------------------------
Three Months Ended Six Months Ended
--------------------------- June 30,
June 30, March June 30,
31, ------------------
2006 2006 2005 2006 2005
---------------------------------------------
Key Financial Ratios:
-------------------------
Return on Average Assets 1.34% 1.27% 1.11% 1.31% 1.02%
Return on Average
Shareholders' Equity 12.43% 11.86% 13.11% 12.15% 11.86%
Return on Average
Tangible Shareholders'
Equity (1) 15.99% 15.41% 16.53% 15.70% 15.01%
Interest Rate Spread 4.35% 4.42% 4.30% 4.38% 4.34%
Net Interest Margin 4.80% 4.80% 4.57% 4.80% 4.61%
Efficiency Ratio 55.61% 57.55% 59.44% 56.74% 60.81%
(1) Tangible shareholders' equity is shareholders' equity less
goodwill and intangible assets.
----------------------------------------------------------------------
----------------------------------------------------------------------
June 30, March 31, June 30,
2006 2006 2005
-----------------------------------
Asset Quality Ratios:
---------------------------------
Nonperforming Loans as a
Percentage of Total Loans, net of
Unearned Income 0.34% 0.35% 0.62%
Nonperforming Assets as a
Percentage of Total Assets 0.47% 0.49% 0.69%
Allowance for Loan Losses as a
Percentage of Total Loans, net
of Unearned Income 1.45% 1.43% 1.46%
Allowance for Loan Losses as a
Percentage of Nonperforming
Assets 263.55% 252.55% 177.74%
Net Charge-Offs to Average Total
Loans, Net of Unearned Income 0.17% 0.21% 0.27%
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
June 30, 2006
(UNAUDITED)
--------------------------------------------------------------
Nonperforming Assets and Net Charge-offs
------------------------------------------
As of and for the three months Bank Other Total
ended June 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
======== ======== ==========
Annualized net charge-offs $ 1,638 $ 790 $ 2,426
======== ======== ==========
As of and for the three months Bank Other Total
ended June 30, 2005
------------------------------------------ -------- ----------
Loans past due 90 days and
still accruing $ 376 $ 8 $ 384
Nonaccrual loans 6,365 405 6,770
Other real estate owned and
repossessed assets 2,091 252 2,343
-------- -------- ----------
Total nonperforming assets $ 8,832 $ 665 $ 9,497
======== ======== ==========
Annualized net charge-offs $ 1,716 $ 1,330 $ 3,046
======== ======== ==========
As of and for the year ended Bank Other Total
December 31, 2005
------------------------------------------ -------- ----------
Loans past due 90 days and
still accruing $ 809 $ - $ 809
Nonaccrual loans 5,393 522 5,915
Other real estate owned and
repossessed assets 3,396 347 3,743
-------- -------- ----------
Total nonperforming assets $ 9,598 $ 869 $ 10,467
======== ======== ==========
Net charge-offs $ 2,490 $ 1,324 $ 3,814
======== ======== ==========
----------------------------------------------------------------------
Asset Quality Ratios
------------------------------------------
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 assets 254.22% 358.87% 263.55%
Annualized net charge-offs to average
total loans, net of unearned income 0.12% 2.52% 0.17%
As of and for the three months ended Bank Other Consolidated
June 30, 2005
----------------------------------------------------------------------
Nonperforming loans as a percentage of
total loans, net of unearned income 0.59% 1.29% 0.62%
Nonperforming assets as a percentage of
total assets 0.64% 1.97% 0.69%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.25% 7.71% 1.46%
Allowance for loan losses as a
percentage of nonperforming assets 163.27% 369.92% 177.74%
Annualized net charge-offs to average
total loans, net of unearned income 0.16% 4.19% 0.27%
As of and for the year ended Bank Other Consolidated
December 31, 2005
----------------------------------------------------------------------
Nonperforming loans as a percentage of
total loans, net of unearned income 0.45% 1.68% 0.49%
Nonperforming assets as a percentage of
total assets 0.59% 2.37% 0.65%
Allowance for loan losses as a
percentage of total loans, net of
unearned income 1.26% 7.89% 1.43%
Allowance for loan losses as a
percentage of nonperforming assets 180.06% 282.74% 188.58%
Net charge-offs to average total loans,
net of unearned income 0.21% 4.22% 0.32%
GREENE COUNTY BANCSHARES, INC.
Condensed Average Balances, Interest Rates and Yields
June 30, 2006
Three Months Ended
June 30,
----------------------------------------------------
2006 2005
----------------------------------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
----------------------------------------------------
Interest-earning
assets:
------------------
Loans 1,426,984 27,781 7.81% 1,140,537 19,851 6.98%
Investment
securities 54,571 649 4.77% 60,691 592 3.91%
Other short-term
investments 4,476 59 5.29% 33,265 260 3.13%
----------------------------------------------------
Total interest-
earning assets 1,486,031 28,489 7.69% 1,234,493 20,703 6.73%
----------------------------------------------------
Non-interest
earning assets 146,520 104,107
---------- ----------
Total assets 1,632,551 1,338,600
========== ==========
Interest-bearing
liabilities:
------------------
Deposits:
------------------
Now accounts,
money market and
savings 505,383 2,680 2.13% 401,441 1,161 1.16%
Time deposits 625,457 5,967 3.83% 598,470 4,340 2.91%
----------------------------------------------------
Total interest
bearing-
deposits 1,130,840 8,647 3.07% 999,911 5,501 2.21%
----------------------------------------------------
Securities sold
under repurchase
and short-term
borrowings 34,783 397 4.58% 15,014 95 2.54%
Notes payable 123,199 1,672 5.44% 81,000 1,035 5.13%
----------------------------------------------------
Total interest-
bearing
liabilities 1,288,822 10,716 3.34% 1,095,925 6,631 2.43%
----------------------------------------------------
Non-Interest
Bearing
Liabilities:
------------------
Demand Deposits 148,937 116,436
Other Liabilities 18,396 12,942
---------- ----------
Total Non-Interest
Bearing
Liabilities 167,333 129,378
---------- ----------
Total
liabilities 1,456,155 1,225,303
---------- ----------
Shareholders'
equity 176,396 113,297
Total liabilities
& shareholders'
equity 1,632,551 1,338,600
========== ==========
Net interest
income 17,773 14,072
========= ========
Interest rate
spread 4.35% 4.30%
======= ========
Net yield on
interest-earning
assets
(net interest
margin) 4.80% 4.57%
======= ========
Six Months Ended
June 30,
----------------------------------------------------
2006 2005
----------------------------------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
----------------------------------------------------
Interest-earning
assets:
------------------
Loans 1,409,788 53,881 7.71% 1,110,231 37,930 6.89%
Investment
securities 55,503 1,280 4.65% 55,874 1,065 3.84%
Other short-term
investments 3,928 95 4.88% 33,694 443 2.65%
----------------------------------------------------
Total interest-
earning assets 1,469,219 55,256 7.58% 1,199,799 39,438 6.63%
----------------------------------------------------
Non-interest
earning assets 146,829 103,339
---------- ----------
Total assets 1,616,048 1,303,138
========== ==========
Interest-bearing
liabilities:
------------------
Deposits:
------------------
Now accounts,
money market and
savings 513,060 5,256 2.07% 395,246 2,027 1.03%
Time deposits 625,750 11,433 3.68% 561,428 7,736 2.78%
----------------------------------------------------
Total interest
bearing-
deposits 1,138,810 16,689 2.96% 956,674 9,763 2.06%
----------------------------------------------------
Securities sold
under repurchase
and short-term
borrowings 28,267 604 4.31% 16,712 184 2.22%
Notes payable 112,474 3,004 5.39% 86,740 2,092 4.86%
----------------------------------------------------
Total interest-
bearing
liabilities 1,279,551 20,297 3.20% 1,060,126 12,039 2.29%
----------------------------------------------------
Non-Interest
Bearing
Liabilities:
------------------
Demand Deposits 144,515 116,644
Other Liabilities 17,856 14,235
---------- ----------
Total Non-Interest
Bearing
Liabilities 162,371 130,879
---------- ----------
Total
liabilities 1,441,922 1,191,005
---------- ----------
Shareholders'
equity 174,126 112,133
Total liabilities
& shareholders'
equity 1,616,048 1,303,138
========== ==========
Net interest
income 34,959 27,399
========= ========
Interest rate
spread 4.38% 4.34%
======= ========
Net yield on
interest-earning
assets
(net interest
margin) 4.80% 4.61%
======= ========
GREENE COUNTY BANCSHARES, INC.
Consolidated Financial Highlights
June 30, 2006
(UNAUDITED)
---------------------------------------------------------------------
June 30, 2006 December 31, 2005
-------------------- -----------------
Loans Balance % Balance % % Change
--------------------- -------------------- --------------------------
Commercial $ 266,416 18.39% $ 245,285 17.67% 8.61%
Commercial real
estate 794,090 54.81% 729,254 52.52% 8.89%
Residential real
estate 300,298 20.73% 319,797 23.03% -6.10%
Consumer 85,526 5.90% 90,682 6.53% -5.69%
Other 2,458 0.17% 3,476 0.25% -29.29%
-------------------- --------------------------
1,448,788 100.00% 1,388,494 100.00% 4.34%
======== ================
Less: Unearned
interest income (10,853) (9,852)
------------ ----------
Total $ 1,437,935 $1,378,642
============ ==========
Loan Balances by Banking Units and
Operating Subsidiaries
-------------------------------------------
June 30, 2006 December 31, 2005
-------------------- -----------------
Loan % to Loan % to
Balance Total Balance Total % Change
Loans Loans
-----------------------------------------------
Greene County Bank $ 115,427 8.03% $ 113,213 8.21% 1.96%
American Fidelity
Bank 474,443 32.99% 447,261 32.46% 6.08%
Bank of Athens 46,516 3.23% 46,744 3.39% -0.49%
Bank of Bulls Gap 4,969 0.35% 5,273 0.38% -5.77%
Bank of Niota 8,784 0.61% 10,478 0.76% -16.17%
Clarksville Community
Bank 103,718 7.21% 107,660 7.81% -3.66%
Cocke County Bank 6,377 0.44% 6,021 0.44% 5.91%
Community Bank of
Loudon County 20,355 1.42% 23,362 1.69% -12.87%
Community Trust Bank 8,698 0.60% 9,937 0.72% -12.47%
First Bristol Bank 60,700 4.22% 57,661 4.18% 5.27%
First Independent
Bank 63,238 4.40% 65,391 4.74% -3.29%
Hamblen County Bank 48,058 3.34% 48,944 3.55% -1.81%
Hawkins County Bank 33,479 2.33% 31,887 2.31% 4.99%
Bank of Lawrence
County 22,458 1.56% 24,222 1.76% -7.28%
Middle Tennessee Bank
and Trust 110,968 7.72% 87,351 6.34% 27.04%
Rutherford Bank and
Trust 92,154 6.41% 83,590 6.06% 10.25%
Sullivan County Bank 13,885 0.97% 16,865 1.22% -17.67%
Washington County
Bank 171,694 11.94% 161,643 11.72% 6.22%
GCB Acceptance
Corporation 12,235 0.85% 12,140 0.88% 0.78%
Superior Financial
Services, Inc. 19,779 1.38% 18,999 1.38% 4.11%
-------------------- --------------------------
Totals $ 1,437,935 100.00% $1,378,642 100.00% 4.30%
==================== ==========================
---------------------------------------------------------------------
---------------------------------------------------------------------
June 30, 2006 December 31, 2005
-------------------- -----------------
Deposits Balance % Balance % % Change
--------------------- -------------------- --------------------------
Non-interest bearing
demand $ 156,951 12.23% $ 144,216 11.13% 8.83%
Interest bearing
demand 273,369 21.30% 268,714 20.74% 1.73%
Money market and
savings 217,810 16.97% 245,740 18.96% -11.37%
Retail time 419,279 32.66% 425,506 32.83% -1.46%
Jumbo time 216,197 16.84% 211,703 16.34% 2.12%
-------------------- --------------------------
Total $ 1,283,606 100.00% $1,295,879 100.00% -0.95%
==================== ==========================
Deposit Balances by Banking Units and Operating
Subsidiaries
-----------------------------------------------------
June 30, 2006 December 31, 2005
-------------------- -----------------
Balance % Balance %% Change
-------------------- --------------------------
Greene County Bank $ 329,491 25.65% $ 322,396 24.90% 2.20%
American Fidelity
Bank 181,707 14.16% 184,874 14.27% -1.71%
Bank of Athens 31,818 2.48% 26,280 2.03% 21.07%
Bank of Bulls Gap 16,368 1.28% 16,181 1.25% 1.16%
Bank of Niota 17,405 1.36% 16,237 1.25% 7.19%
Clarksville Community
Bank 164,223 12.79% 169,032 13.04% -2.85%
Cocke County Bank 29,477 2.30% 28,314 2.18% 4.11%
Community Bank of
Loudon County 24,090 1.88% 24,507 1.89% -1.70%
Community Trust Bank 4,566 0.36% 6,539 0.50% -30.17%
First Bristol Bank 31,396 2.45% 47,351 3.65% -33.70%
First Independent
Bank 93,370 7.27% 101,071 7.80% -7.62%
Hamblen County Bank 57,153 4.45% 52,998 4.09% 7.84%
Hawkins County Bank 47,502 3.70% 47,484 3.66% 0.04%
Bank of Lawrence
County 71,774 5.59% 70,519 5.44% 1.78%
Middle Tennessee Bank
and Trust 42,270 3.29% 38,919 3.00% 8.61%
Rutherford Bank and
Trust 51,207 3.99% 51,903 4.01% -1.34%
Sullivan County Bank 11,631 0.91% 13,671 1.05% -14.92%
Washington County
Bank 78,158 6.09% 77,603 5.99% 0.72%
GCB Acceptance
Corporation - 0.00% - 0.00% -
Superior Financial
Services, Inc. - 0.00% - 0.00% -
-------------------- --------------------------
$ 1,283,606 100.00% $1,295,879 100.00% -0.95%
==================== ==========================
*T