GREENEVILLE, Tenn.--()--Green Bankshares, Inc. (NASDAQ: GRNB), the holding company for GreenBank, today reported a net loss for the third quarter and nine months ended September 30, 2009. Key points for the quarter include:
“Although our third quarter results were disappointing, we are encouraged by the positive economic data that has been released recently and look forward to actively participating in the recovery as it occurs.”
- A net loss available to common shareholders of $7.7 million or $0.59 per diluted share, reflecting primarily higher credit costs as the Company continues its efforts to identify and address credit quality issues in the loan portfolio;
- Net interest income increased 1% from the second quarter of 2009, while the net interest margin stabilized at 3.33%;
- The quarter's loan loss provision of $18.5 million was down from $24.4 million in the second quarter of 2009 and modestly exceeded net charge-offs; the loan loss reserve increased to 2.39% of outstanding loans from 2.30% at the end of the second quarter of 2009;
- Non-performing assets (NPAs) totaled $125.0 million at September 30, 2009, declining $4.1 million or 3% from the level at June 30, 2009; this improvement reflected the first decline in NPAs since the second quarter of 2008; the ratio of NPAs to total assets was 4.48% at September 30, 2009, down from 4.91% at June 30, 2009; NPAs were written down 30%, on average, at September 30, 2009;
- Loans past due 30 to 89 days, excluding non-accrual loans, declined from 0.84% of loans at June 30, 2009 to 0.76% of loans at September 30, 2009;
- Non-interest income, excluding net securities gains, increased 13% from the second quarter of 2009;
- Non-interest expense declined 12% from the second quarter of 2009, excluding the pre-tax, non-cash goodwill impairment charge of $143.4 million recorded in the second quarter; and
- The Company's estimated regulatory capital levels remained strong at September 30, 2009, with Tier 1 Leverage at 10.49%, Tier 1 Risk-Based Capital at 13.17%, and Total Risk-Based Capital at 14.43%; the tangible common equity to tangible assets ratio was 5.42% at September 30, 2009.
The Company's net loss available to common shareholders for the third quarter of 2009 totaled $7,748,000 or $0.59 per diluted share, driven principally by higher credit costs, which were partially offset by continued strength in core operating earnings of the Company. This compares with net income in the year-earlier quarter of $1,234,000 or $0.10 per diluted share.
For the nine-month period ended September 30, 2009, the Company reported a net operating loss of $18,186,000 or $1.40 per diluted share, excluding the after-tax, non-recurring, non-cash goodwill impairment charge of $137,414,000 recorded in the second quarter of 2009 (please refer to the non-GAAP reconciliation on page 5). This compares with net income of $9,874,000 or $0.76 per diluted share for the same period a year ago. Including the goodwill impairment charge, the 2009 year-to-date net loss available to common shareholders was $155,600,000 or $11.91 per diluted share.
Stan Puckett, Chairman and Chief Executive Officer, commented, "Economic conditions remain challenging with high unemployment and weak real estate activity. We will continue to work aggressively to identify and address problem loans."
The following information graphically displays the Bank only loan portfolio detail, by purpose code, at September 30, 2009:
The following is a breakdown of the Bank's commercial real estate portfolio, by purpose code, between the periods presented:
|
September 30,
2009 |
June 30,
2009 |
Change |
% Change | ||||||||||
| Commercial Real Estate Portfolio | |||||||||||||
| Acquisition & development | $ | 190,826 | $ | 228,680 | $ | (37,854 | ) | -16.55 | % | ||||
| Lot warehouse | 68,948 | 75,909 | (6,961 | ) | -9.17 | % | |||||||
| Commercial 1-4 family construction | 83,155 | 109,319 | (26,164 | ) | -23.93 | % | |||||||
| Total speculative 1 to 4 family | 342,929 | 413,908 | (70,979 | ) | -17.15 | % | |||||||
| Commercial vacant land | 102,312 | 103,219 | (907 | ) | -0.88 | % | |||||||
| Commercial construction non-owner-occupied | 174,199 | 166,486 | 7,713 | 4.63 | % | ||||||||
| Commercial construction owner-occupied | 37,034 | 56,721 | (19,687 | ) | -34.71 | % | |||||||
| Consumer residential construction | 23,833 | 27,267 | (3,434 | ) | -12.59 | % | |||||||
| Total non-speculative | 337,378 | 353,693 | (16,315 | ) | -4.61 | % | |||||||
| Total construction and development | 680,307 | 767,601 | (87,294 | ) | -11.37 | % | |||||||
| Non-owner-occupied commercial real estate | 396,889 | 394,586 | 2,303 | 0.58 | % | ||||||||
| Total commercial real estate | $ | 1,077,196 | $ | 1,162,187 | $ | (84,991 | ) | -7.31 | % | ||||
During the third quarter of 2009, net charge-offs totaled $18,436,000 compared with $23,281,000 during the three-month period ended June 30, 2009. At September 30, 2009, the loan loss reserve totaled $50,196,000 and represented 2.39% of outstanding loans, up from 2.30% at June 30, 2009, and 1.50% at September 30, 2008. The increase in the reserve coverage ratio between the second and third quarters of 2009 was driven principally by the continued economic weakness in the Company's markets.
NPAs declined $4,086,000 from second quarter 2009 level and represented 4.48% of total assets at September 30, 2009, compared with 4.91% of total assets at June 30, 2009, and 1.76% at September 30, 2008. This reduction represents the first decline in NPAs since the second quarter of 2008.
The following table reflects the changes in NPA balances from June 30, 2009, through September 30, 2009:
|
Non-Accrual |
OREO |
Past Due |
Total |
||||||||
| June 30, 2009 | $93,889,000 | $34,468,000 | $ 820,000 | $129,177,000 | |||||||
| Loan foreclosures | (36,080,000 | ) | 36,080,000 | n/a | n/a | ||||||
| Gross loan charge-offs | (19,224,000 | ) | n/a | n/a | (19,224,000 | ) | |||||
| New non-accrual loans | 28,562,000 | n/a | n/a | 28,562,000 | |||||||
| OREO sales proceeds | n/a | (10,557,000 | ) | n/a | (10,557,000 | ) | |||||
| OREO write-downs, net | n/a | (3,578,000 | ) | n/a | (3,578,000 | ) | |||||
| Increase in 90 day past due loans | n/a | n/a | 711,000 | 711,000 | |||||||
| September 30, 2009 | $67,147,000 | $56,413,000 | $1,531,000 | $125,091,000 | |||||||
After interest reversals of $280,000, net interest income totaled $20,338,000 for the third quarter of 2009, representing an increase of $158,000 from second quarter 2009 level and resulting from lower funding costs incurred. Despite the increase in net interest income in the third quarter, the net interest margin fell 10 basis points from the second quarter of 2009 and stabilized at 3.33%. This temporary margin compression resulted from a change in the mix of earning assets as higher-yielding average loan balances declined approximately $52,000,000 and lower-yielding, short-term, temporary investments increased approximately $123,000,000 due to continued average core deposit inflows.
Non-interest income totaled $9,189,000 for the three months ended September 30, 2009. Excluding securities gains of $933,000 and a security impairment charge of $503,000, non-interest income totaled $8,759,000 compared with $7,541,000 during the second quarter of 2009, an increase of $1,218,000 or 16%. The ongoing success of GreenBank's High Performance Checking product added 4,619 net new checking account customers during the quarter, for a new account opening ratio of 2.4 new accounts opened for each account closed, resulting in an increase in deposit service charge revenues of $651,000 or 11% from the second quarter of 2009. Wealth management revenues improved almost 22% from the second quarter of 2009, reflecting continuing strength in trust and annuity sales. Included in the Other Income component of non-interest income for the third quarter were non-recurring items totaling $468,000 related to insurance proceeds received and a gain on the sale of undeveloped land adjacent to a branch location.
Non-interest expense totaled $22,365,000 for the three-month period ended September 30, 2009, compared with $168,914,000 incurred during the second quarter of 2009. Excluding the one-time, non-cash goodwill impairment charge of $143,389,000 recorded in the second quarter, comparable non-interest expense for the second quarter of 2009 was $25,525,000 (please refer to the non-GAAP reconciliation on page 5). The decline in comparable non-interest expenses of $3,160,000 or 12% from the second quarter was principally a result of the $1,731,000 decrease in FDIC insurance costs along with the elimination of the Company's 401(k) employee contribution and all discretionary cash incentive compensation for the 2009 fiscal year.
Puckett concluded, "Although our third quarter results were disappointing, we are encouraged by the positive economic data that has been released recently and look forward to actively participating in the recovery as it occurs."
Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.794 billion, is the holding company for GreenBank. GreenBank, which traces its origin to 1890, has 63 branches across East and Middle Tennessee, and one branch each in Bristol, Virginia, and Hot Springs, North Carolina. It also provides wealth management services through its GreenWealth Division and residential mortgage lending through its Mortgage Division. In addition, GreenBank 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, 2008, and include, but are not limited to, (1) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (2) continuation of the historically low short-term interest rate environment; (3) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (4) increased competition with other financial institutions in the markets that GreenBank serves; (5) greater than anticipated deterioration or lack of sustained growth in the national or local economies; (6) rapid fluctuations or unanticipated changes in interest rates; (7) the impact of governmental restrictions on entities participating in the Capital Purchase Program of the United States Department of the Treasury; (8) changes in state and federal legislation, regulations or policies applicable to banks or other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy and (9) the loss of key personnel. The Company undertakes no obligation to update forward-looking statements.
|
GREEN BANKSHARES, INC. |
||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|
Sept. 30,
2009 |
June 30,
2009 |
Sept. 30,
2008 |
Sept. 30,
2009 |
Sept. 30,
2008 |
||||||||||||||
| Total non-interest expense | $ | 22,365 | $ | 168,914 | $ | 21,944 | $ | 209,110 | $ | 61,645 | ||||||||
| Goodwill impairment charge | -- | (143,389 | ) | -- | (143,389 | ) | -- | |||||||||||
| Operating expenses | $ | 22,365 | $ | 25,525 | $ | 21,944 | $ | 65,721 | $ | 61,645 | ||||||||
|
Net income (loss) available to common shareholders |
$ |
(7,748 |
) |
$ |
(151,400 |
) |
$ |
1,234 |
$ |
(155,600 |
) |
$ |
9,874 |
|||||
|
Goodwill impairment charge, net of tax |
-- |
137,414 |
-- |
137,414 |
-- |
|||||||||||||
| Net operating income (loss) | $ | (7,748 | ) | $ | (13,986 | ) | $ | 1,234 | $ | (18,186 | ) | $ | 9,874 | |||||
| Per Diluted Share: | ||||||||||||||||||
|
Net income (loss) available to common shareholders |
$ |
(0.59 |
) |
$ |
(11.58 |
) |
$ |
0.10 |
$ |
(11.91 |
) |
$ |
0.76 |
|||||
|
Goodwill impairment charge, net of tax |
-- |
10.51 |
-- |
10.51 |
-- |
|||||||||||||
| Net operating income (loss) | $ | (0.59 | ) | $ | (1.07 | ) | $ | 0.10 | $ | (1.40 | ) | $ | 0.76 | |||||
Use of Non-GAAP financial measures
The above table presents computations and other financial information excluding the goodwill impairment charge (non-GAAP). The goodwill impairment charge is included in the financial results presented in accordance with generally accepted accounting principles (GAAP). The Company believes that the exclusion of goodwill impairment in expressing net operating income (loss), operating expenses and earnings (loss) per share data provides a more meaningful base for period to period comparisons which will assist investors in analyzing the operating results of the Company and predicting operating performance. The Company utilizes these non-GAAP financial measures to compare the operating performance with comparable periods in prior years and with internally prepared projections. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, the Company has policies in place to address goodwill impairment from other normal operating expenses to ensure that the Company's operating results are properly reflected for period to period comparisons.
|
GREEN BANKSHARES, INC. |
|||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
|
Sept. 30,
2009 |
June 30,
2009 |
Sept. 30,
2008 |
Sept. 30,
2009 |
Sept. 30,
2008 |
|||||||||||||||||
| Interest income | $ | 34,796 | $ | 34,856 | $ | 42,566 | $ | 105,032 | $ | 131,369 | |||||||||||
| Interest expense | 14,458 | 14,676 | 18,182 | 45,085 | 57,469 | ||||||||||||||||
| Net interest income | 20,338 | 20,180 | 24,384 | 59,947 | 73,900 | ||||||||||||||||
| Provision for loan losses | 18,475 | 24,384 | 8,620 | 43,844 | 20,527 | ||||||||||||||||
|
Net interest income (loss) after provision for loan losses |
1,863 | (4,204 | ) | 15,764 | 16,103 | 53,373 | |||||||||||||||
| Non-interest income | 9,189 | 7,312 | 8,010 | 23,444 | 23,428 | ||||||||||||||||
| Non-interest expense | 22,365 | 168,914 | 21,944 | 209,110 | 61,645 | ||||||||||||||||
| Income (loss) before income taxes | (11,313 | ) | (165,806 | ) | 1,830 | (169,563 | ) | 15,156 | |||||||||||||
| Provision (benefit) for income taxes | (4,815 | ) | (15,656 | ) | 596 | (17,695 | ) | 5,282 | |||||||||||||
| Income (loss) | (6,498 | ) | (150,150 | ) | 1,234 | (151,858 | ) | 9,874 | |||||||||||||
|
Preferred stock dividends and related costs |
1,250 |
1,250 |
-- |
3,732 |
-- |
||||||||||||||||
|
Net income (loss) available to common shareholders |
$ |
(7,748 |
) |
$ |
(151,400 |
) |
$ |
1,234 |
$ |
(155,600 |
) |
$ |
9,874 |
||||||||
| Comprehensive income (loss) | $ | (5,073 | ) | $ | (150,557 | ) | $ | 1,547 | $ | (149,962 | ) | $ | 8,478 | ||||||||
| Earnings (loss) per share: | |||||||||||||||||||||
| Basic | $ | (0.59 | ) | $ | (11.58 | ) | $ | 0.10 | $ | (11.91 | ) | $ | 0.76 | ||||||||
| Diluted | $ | (0.59 | ) | $ | (11.58 | ) | $ | 0.10 | $ | (11.91 | ) | $ | 0.76 | ||||||||
| Weighted average shares: | |||||||||||||||||||||
| Basic | 13,070 | 13,070 | 12,932 | 13,068 | 12,932 | ||||||||||||||||
|
Diluted 1 |
13,070 | 13,070 | 12,948 | 13,068 | 12,936 | ||||||||||||||||
| Dividends declared per share | $ | 0.00 | $ | 0.00 | $ | 0.13 | $ | 0.13 | $ | 0.39 | |||||||||||
|
Sept. 30,
2009 |
Dec. 31,
2008 |
Sept. 30,
2008 |
|||||||||||||||||||
| Total assets | $ | 2,794,217 | $ | 2,944,671 | $ | 3,012,041 | |||||||||||||||
| Cash and cash equivalents | 346,131 | 198,358 | 102,919 | ||||||||||||||||||
| Investment securities | 168,307 | 217,249 | 306,857 | ||||||||||||||||||
| Loans, net of unearned interest | 2,099,267 | 2,223,390 | 2,323,076 | ||||||||||||||||||
| Allowance for loan losses | (50,196 | ) | (48,811 | ) | (34,856 | ) | |||||||||||||||
| Deposits | 2,214,761 | 2,184,147 | 2,276,198 | ||||||||||||||||||
| Shareholders' equity | 227,388 | 381,231 | 326,482 | ||||||||||||||||||
| Common shareholders' equity 2 | 161,000 | 315,885 | 326,482 | ||||||||||||||||||
| Tangible common shareholders' equity 3 | 151,019 | 160,411 | 170,365 | ||||||||||||||||||
| Common book value per share 2 | 12.22 | 24.09 | 25.12 | ||||||||||||||||||
| Tangible common book value per share 3 | 11.47 | 12.23 | 13.11 | ||||||||||||||||||
|
1 |
Diluted weighted average shares outstanding for the three- and nine-month periods ended September 30, 2009, exclude 101,636 and 95,526 restricted average shares, respectively, because their impact would be anti-dilutive. |
||||||||||||||||||||
|
2 |
Common shareholders' equity is shareholders' equity less preferred stock. |
||||||||||||||||||||
|
3 |
Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock. |
||||||||||||||||||||
| GREEN BANKSHARES, INC. | ||||||||||||
| Consolidated Balance Sheets | ||||||||||||
| September 30, 2009, December 31, 2008 and September 30, 2008 | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2009 | 2008* | 2008 | ||||||||||
|
ASSETS |
||||||||||||
| Cash and due from banks | $ | 345,209 | $ | 193,095 | $ | 46,168 | ||||||
| Federal funds sold | 922 | 5,263 | 56,751 | |||||||||
| Cash and cash equivalents | 346,131 | 198,358 | 102,919 | |||||||||
| Interest earning deposits in other banks | 1,000 | - | - | |||||||||
| Securities available-for-sale ("AFS") | 154,937 | 203,562 | 292,897 | |||||||||
|
Securities held-to-maturity (with a market value of $644, $601 and $700 on September 30, 2009, December 31, 2008 and September 30, 2008) |
636 | 657 | 757 | |||||||||
| FHLB and other stock, at cost | 12,734 | 13,030 | 13,203 | |||||||||
| Loans held for sale | 1,064 | 442 | 1,824 | |||||||||
| Loans, net of unearned income | 2,099,267 | 2,223,390 | 2,323,076 | |||||||||
| Allowance for loan losses | (50,196 | ) | (48,811 | ) | (34,856 | ) | ||||||
| Other real estate owned and repossessed assets | 56,413 | 45,371 | 12,215 | |||||||||
| Bank premises and equipment, net | 82,551 | 83,359 | 83,569 | |||||||||
| Cash surrender value of life insurance | 29,997 | 29,539 | 29,270 | |||||||||
| Goodwill | - | 143,389 | 143,389 | |||||||||
| Core deposit and other intangibles | 9,981 | 12,085 | 12,728 | |||||||||
| Other assets | 49,702 | 40,300 | 31,050 | |||||||||
| Total assets | $ | 2,794,217 | $ | 2,944,671 | $ | 3,012,041 | ||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
| Non-interest-bearing deposits | $ | 156,797 | $ | 176,685 | $ | 189,262 | ||||||
| Interest-bearing deposits | 1,998,157 | 1,645,115 | 1,650,567 | |||||||||
| Brokered deposits | 59,807 | 362,347 | 436,369 | |||||||||
| Total deposits | 2,214,761 | 2,184,147 | 2,276,198 | |||||||||
| Federal funds purchased | - | - | 413 | |||||||||
| Repurchase agreements | 25,294 | 35,302 | 64,929 | |||||||||
| FHLB advances and notes payable | 216,578 | 229,349 | 229,906 | |||||||||
| Subordinated debentures | 88,662 | 88,662 | 88,662 | |||||||||
| Accrued interest payable and other liabilities | 21,534 | 25,980 | 25,451 | |||||||||
| Total liabilities | 2,566,829 | 2,563,440 | 2,685,559 | |||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||
|
Preferred stock: no par value, 1,000,000 shares authorized; 72,278, 72,278 and -0- shares outstanding |
66,388 | 65,346 | - | |||||||||
|
Common stock: $2 par value, 20,000,000 shares authorized; 13,171,474, 13,112,687 and 12,999,161 shares outstanding |
26,343 | 26,225 | 25,998 | |||||||||
| Common stock warrants | 6,934 | 6,934 | - | |||||||||
| Additional paid in capital | 188,146 | 187,742 | 185,631 | |||||||||
| Retained earnings (deficit) | (61,666 | ) | 95,647 | 114,742 | ||||||||
| Accumulated other comprehensive income (loss) | 1,243 | (663 | ) | 111 | ||||||||
| Total shareholders' equity | 227,388 | 381,231 | 326,482 | |||||||||
| Total liabilities & shareholders' equity | $ | 2,794,217 | $ | 2,944,671 | $ | 3,012,041 | ||||||
| * Derived from Audited Consolidated Financial Statements. | ||||||||||||
| GREEN BANKSHARES, INC. | |||||||||||||||||||||||
| Consolidated Statements of Income and Comprehensive Income | |||||||||||||||||||||||
| Three Months Ended September 30, 2009, June 30, 2009 and September 30, 2008 and Nine Months Ended September 30, 2009 and 2008 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (Dollars in thousands except share and per share data) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
| 2009 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
|
Interest income: |
|||||||||||||||||||||||
| Interest and fees on loans | $ | 32,559 | $ | 32,528 | $ | 38,497 | $ | 97,732 | $ | 120,653 | |||||||||||||
| Taxable securities | 1,669 | 1,843 | 3,487 | 5,732 | 9,134 | ||||||||||||||||||
| Nontaxable securities | 315 | 314 | 320 | 949 | 977 | ||||||||||||||||||
| FHLB and other stock | 151 | 135 | 176 | 436 | 493 | ||||||||||||||||||
| Federal funds sold and other | 102 | 36 | 86 | 183 | 112 | ||||||||||||||||||
| Total interest income | 34,796 | 34,856 | 42,566 | 105,032 | 131,369 | ||||||||||||||||||
|
Interest expense: |
|||||||||||||||||||||||
| Deposits | 11,480 | 11,511 | 14,345 | 35,644 | 43,657 | ||||||||||||||||||
| Federal funds purchased and repurchase agreements | 6 | 7 | 262 | 22 | 2,054 | ||||||||||||||||||
| FHLB advances and notes payable | 2,416 | 2,469 | 2,525 | 7,328 | 8,268 | ||||||||||||||||||
| Subordinated debentures | 556 | 689 | 1,050 | 2,091 | 3,490 | ||||||||||||||||||
| Total interest expense | 14,458 | 14,676 | 18,182 | 45,085 | 57,469 | ||||||||||||||||||
| Net interest income | 20,338 | 20,180 | 24,384 | 59,947 | 73,900 | ||||||||||||||||||
| Provision for loan losses | 18,475 | 24,384 | 8,620 | 43,844 | 20,527 | ||||||||||||||||||
| Net interest income (loss) after provision for loan losses | 1,863 | (4,204 | ) | 15,764 | 16,103 | 53,373 | |||||||||||||||||
|
Non-interest income: |
|||||||||||||||||||||||
| Service charges on deposit accounts | 6,446 | 5,795 | 6,070 | 17,597 | 17,525 | ||||||||||||||||||
| Other charges and fees | 505 | 505 | 502 | 1,459 | 1,511 | ||||||||||||||||||
| Trust and investment services income | 595 | 489 | 564 | 1,472 | 1,398 | ||||||||||||||||||
| Mortgage banking income | 127 | 110 | 139 | 292 | 689 | ||||||||||||||||||
| Security impairment loss recognized | (503 | ) | (229 | ) | - | (732 | ) | - | |||||||||||||||
| Net gain on the sale of securities | 933 | - | 72 | 933 | 72 | ||||||||||||||||||
| Other income | 1,086 | 642 | 663 | 2,423 | 2,233 | ||||||||||||||||||
| Total non-interest income | 9,189 | 7,312 | 8,010 | 23,444 | 23,428 | ||||||||||||||||||
|
Non-interest expense: |
|||||||||||||||||||||||
| Employee compensation | 7,315 | 8,064 | 8,961 | 23,071 | 25,620 | ||||||||||||||||||
| Employee benefits | 526 | 1,229 | 1,197 | 3,050 | 3,643 | ||||||||||||||||||
| Occupancy expense | 1,762 | 1,712 | 1,746 | 5,261 | 5,110 | ||||||||||||||||||
| Equipment expense | 761 | 895 | 719 | 2,398 | 2,566 | ||||||||||||||||||
| Computer hardware/software expense | 735 | 651 | 715 | 2,023 | 2,066 | ||||||||||||||||||
| Professional services | 457 | 446 | 470 | 1,432 | 1,428 | ||||||||||||||||||
| Advertising | 678 | 679 | 710 | 1,421 | 2,398 | ||||||||||||||||||
| Loss on OREO and repossessed assets | 3,578 | 3,346 | 1,942 | 7,005 | 3,022 | ||||||||||||||||||
| FDIC insurance | 819 | 2,550 | 418 | 4,069 | 1,181 | ||||||||||||||||||
| Core deposit and other intangible amortization | 648 | 652 | 649 | 2,104 | 1,958 | ||||||||||||||||||
| Goodwill impairment | - | 143,389 | - | 143,389 | - | ||||||||||||||||||
| Other expenses | 5,086 | 5,301 | 4,417 | 13,887 | 12,653 | ||||||||||||||||||
| Total non-interest expense | 22,365 | 168,914 | 21,944 | 209,110 | 61,645 | ||||||||||||||||||
| Income (loss) before income taxes | (11,313 | ) | (165,806 | ) | 1,830 | (169,563 | ) | 15,156 | |||||||||||||||
| Income taxes provision (benefit) | (4,815 | ) | (15,656 | ) | 596 | (17,695 | ) | 5,282 | |||||||||||||||
| Net income (loss) | (6,498 | ) | (150,150 | ) | 1,234 | (151,868 | ) | 9,874 | |||||||||||||||
| Preferred stock dividends and accretion of discount on warrants | 1,250 | 1,250 | - | 3,732 | - | ||||||||||||||||||
| Net income (loss) available to common shareholders | $ | (7,748 | ) | $ | (151,400 | ) | $ | 1,234 | $ | (155,600 | ) | $ | 9,874 | ||||||||||
| Comprehensive income (loss) | $ | (5,073 | ) | $ | (150,557 | ) | $ | 1,547 | $ | (149,962 | ) | $ | 8,478 | ||||||||||
|
Per share of common stock: |
|||||||||||||||||||||||
| Basic earnings (loss) | ($0.59 | ) | ($11.58 | ) | $0.10 | ($11.91 | ) | $0.76 | |||||||||||||||
| Diluted earnings (loss) | ($0.59 | ) | ($11.58 | ) | $0.10 | ($11.91 | ) | $0.76 | |||||||||||||||
| Dividends | $0.00 | $0.00 | $0.13 | $0.13 | $0.39 | ||||||||||||||||||
|
Weighted average shares outstanding: |
|||||||||||||||||||||||
| Basic | 13,070,216 | 13,070,216 | 12,931,774 | 13,067,798 | 12,931,538 | ||||||||||||||||||
| Diluted (1) | 13,070,216 | 13,070,216 | 12,947,618 | 13,067,798 | 12,936,084 | ||||||||||||||||||
| (1) Diluted weighted average shares outstanding for the three and nine months ended September 30, 2009 excludes 101,636 and 95,526 shares, respectively, because they are anti-dilutive. | |||||||||||||||||||||||
|
Non-GAAP Measures Presented in Earnings Release |
|||||||||||||||||||||||
| Total non-interest expense | $ | 22,365 | $ | 168,914 | $ | 21,944 | $ | 209,110 | $ | 61,645 | |||||||||||||
| Goodwill impairment charge | - | (143,389 | ) | - | (143,389 | ) | - | ||||||||||||||||
| Operating expenses | $ | 22,365 | $ | 25,525 | $ | 21,944 | $ | 65,721 | $ | 61,645 | |||||||||||||
| Net income (loss) available to common shareholders | $ | (7,748 | ) | $ | (151,400 | ) | $ | 1,234 | $ | (155,600 | ) | $ | 9,874 | ||||||||||
| Goodwill impairment charge, net of tax | - | 137,414 | - | 137,414 | - | ||||||||||||||||||
| Net operating income (loss) | $ | (7,748 | ) | $ | (13,986 | ) | $ | 1,234 | $ | (18,186 | ) | $ | 9,874 | ||||||||||
| GREEN BANKSHARES, INC. | ||||||||||||||||||||||
| Consolidated Financial Highlights | ||||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||||
| (Dollars in thousands except share and per share data) | ||||||||||||||||||||||
| September 30, | December 31, | % | ||||||||||||||||||||
| 2009 | 2008 | Change | ||||||||||||||||||||
|
Financial Condition Data: |
||||||||||||||||||||||
| Assets | $ | 2,794,217 | $ | 2,944,671 | -5.11 | % | ||||||||||||||||
| Loans, net of unearned interest | 2,099,267 | 2,223,390 | -5.58 | % | ||||||||||||||||||
| Cash and investments | 515,438 | 415,607 | 24.02 | % | ||||||||||||||||||
| Federal funds sold | 922 | 5,263 | -82.48 | % | ||||||||||||||||||
| Deposits | 2,214,761 | 2,184,147 | 1.40 | % | ||||||||||||||||||
| FHLB advances and notes payable | 216,578 | 229,349 | -5.57 | % | ||||||||||||||||||
| Subordinated debentures | 88,662 | 88,662 | 0.00 | % | ||||||||||||||||||
| Repurchase agreements | 25,294 | 35,302 | -28.35 | % | ||||||||||||||||||
| Shareholders' equity | 227,388 | 381,231 | -40.35 | % | ||||||||||||||||||
| Common shareholders' equity (1) | 161,000 | 315,885 | -49.03 | % | ||||||||||||||||||
| Tangible common shareholders' equity (2) | 151,019 | 160,411 | -5.85 | % | ||||||||||||||||||
| Tangible shareholders' equity (3) | 217,407 | 225,757 | -3.70 | % | ||||||||||||||||||
|
Ratios: |
||||||||||||||||||||||
| Common book value per share (1) | $12.22 | $24.09 | -49.27 | % | ||||||||||||||||||
| Tangible common book value per share (2) | $11.47 | $12.23 | -6.21 | % | ||||||||||||||||||
| Total tangible equity to tangible assets (3)(4) | 7.81 | % | 8.09 | % | -3.53 | % | ||||||||||||||||
| Tangible common equity to tangible assets (2)(4) | 5.42 | % | 5.75 | % | -5.69 | % | ||||||||||||||||
| Average equity to average assets | 11.98 | % | 11.24 | % | 6.58 | % | ||||||||||||||||
| (1) Common shareholders' equity is shareholders' equity less preferred stock. | ||||||||||||||||||||||
| (2) Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock. | ||||||||||||||||||||||
| (3) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. | ||||||||||||||||||||||
| (4) Tangible assets is total assets less goodwill and intangible assets. | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||
| 2009 | 2008 | % Change | 2009 | 2008 | % Change | |||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||
| Total interest income | $ | 34,796 | $ | 42,566 | -18.25 | % | $ | 105,032 | $ | 131,369 | -20.05 | % | ||||||||||
| Total interest expense | 14,458 | 18,182 | -20.48 | % | 45,085 | 57,469 | -21.55 | % | ||||||||||||||
| Net interest income | 20,338 | 24,384 | -16.59 | % | 59,947 | 73,900 | -18.88 | % | ||||||||||||||
| Provision for loan losses | 18,475 | 8,620 | 114.33 | % | 43,844 | 20,527 | 113.59 | % | ||||||||||||||
| Net interest income after provision for loan losses | 1,863 | 15,764 | -88.18 | % | 16,103 | 53,373 | -69.83 | % | ||||||||||||||
| Non-interest income | 9,189 | 8,010 | 14.72 | % | 23,444 | 23,428 | 0.07 | % | ||||||||||||||
| Non-interest expense | 22,365 | 21,944 | 1.92 | % | 209,110 | 61,645 | 239.22 | % | ||||||||||||||
| Income (loss) before income taxes | (11,313 | ) | 1,830 | -718.20 | % | (169,563 | ) | 15,156 | N/M | |||||||||||||
| Income tax expense (benefit) | (4,815 | ) | 596 | -907.89 | % | (17,695 | ) | 5,282 | N/M | |||||||||||||
| Net income (loss) | (6,498 | ) | 1,234 | -626.58 | % | (151,868 | ) | 9,874 | N/M | |||||||||||||
| Preferred stock dividend and accretion of discount on warrants | 1,250 | - | 100.00 | % | 3,732 | - | 100.00 | % | ||||||||||||||
| Net income (loss) available to common shareholders | $ | (7,748 | ) | $ | 1,234 | -727.88 | % | $ | (155,600 | ) | $ | 9,874 | N/M | |||||||||
| Comprehensive income (loss) | $ | (5,073 | ) | $ | 1,547 | -427.93 | % | $ | (149,962 | ) | $ | 8,478 | N/M | |||||||||
|
Per Share of Common Stock: |
||||||||||||||||||||||
| Basic earnings (loss) | ($0.59 | ) | $0.10 | -690.00 | % | ($11.91 | ) | $0.76 | N/M | |||||||||||||
| Diluted earnings (loss) | ($0.59 | ) | $0.10 | -690.00 | % | ($11.91 | ) | $0.76 | N/M | |||||||||||||
| Dividends | $0.00 | $0.13 | -100.00 | % | $0.13 | $0.39 | -66.67 | % | ||||||||||||||
|
Weighted Average Shares Outstanding: |
||||||||||||||||||||||
| Basic | 13,070,216 | 12,931,774 | 13,067,798 | 12,931,538 | ||||||||||||||||||
| Diluted | 13,070,216 | 12,947,618 | 13,067,798 | 12,936,084 | ||||||||||||||||||
| Three Months Ended |
Nine Months Ended September 30, |
|||||||||||||||||||||
|
September 30, 2009 |
June 30, 2009 |
September 30, 2008 |
||||||||||||||||||||
| 2009 | 2008 | |||||||||||||||||||||
|
Key Financial Ratios: |
||||||||||||||||||||||
| Return on average assets | -1.12 | % | -21.67 | % | 0.16 | % | -7.43 | % | 0.45 | % | ||||||||||||
| Return on average shareholders' equity | -12.97 | % | -157.41 | % | 1.49 | % | -62.04 | % | 3.99 | % | ||||||||||||
| Return on average common shareholders' equity (1) | -18.00 | % | -189.79 | % | 1.49 | % | -77.32 | % | 3.99 | % | ||||||||||||
| Return on average common tangible shareholders' equity (2) | -19.16 | % | -363.33 | % | 2.82 | % | ||||||||||||||||