EX-99.1 2 a5448691ex991.txt EXHIBIT 99.1 Green Bankshares Reports Record Quarterly Earnings, up 13% to $0.62 Per Diluted Share Results of Operations Reflect Both Strong Organic Growth and the Recent Completion of the Civitas Acquisition GREENEVILLE, Tenn.--(BUSINESS WIRE)--July 16, 2007--Green Bankshares, Inc. (NASDAQ:GRNB), the holding company for GreenBank, today announced record results for the second quarter and first six months of 2007, highlighted by a 13% year-over-year increase in quarterly diluted per share earnings to $0.62 over the year-earlier quarter and an 11% increase in year-to-date diluted per share earnings to $1.19 over the same period a year ago. The 2007 diluted per share earnings reflect an increase in weighted average shares outstanding associated with the Company's May acquisition of Civitas BankGroup. Net income for the second quarter increased 29% to $7,086,000 compared with $5,483,000 in the year earlier period. For the first half of 2007, net income rose by over 20% to $12,702,000 from $10,579,000 in the same period last year. Operating earnings, excluding one-time merger expenses of $450,000 incurred during the second quarter, would have been $7,365,000 or $0.65 per diluted share for the quarter and $12,981,000 or $1.22 per diluted share for the first half of 2007, representing increases of 34% and 23%, respectively, over the comparable periods last year. The Company's income statement and balance sheet for the second quarter reflected continued strong organic growth in the Company's business as well as the positive impact of the Civitas acquisition. Together, these factors helped push Green Bankshares's total assets to $2.9 billion as of June 30, 2007, ranking the Company as the second largest financial institution based in Tennessee. Commenting on the second quarter results, Stan Puckett, Chairman and Chief Executive Officer, said, "We are pleased with second quarter operating earnings and the underlying trends that influence future performance. Credit quality was exceptional with net charge-offs of only four basis points on a consolidated basis and a mere one basis point at the bank-only level. Organic loan growth from the first quarter was a robust 26% on an annualized basis and loan pricing remained solid in the face of intense competition." Puckett added, "The successful conclusion of the Civitas merger was a milestone event for us, boosting our presence significantly in Middle Tennessee and strengthening our footprint across the state. Importantly, the integration work behind the merger went smoothly and efficiently, much to the credit of our new associates in the 12 former Cumberland Bank branches, enabling these new locations for GreenBank to add immediately to our operating momentum. Our expanded service platform will enhance our ability to reach new customers and deliver the solutions to meet their financial needs. All systems, technology and operating policies at both banks have been fully integrated since May 18." Puckett pointed out that the Company added $723,868,000 to its loan portfolio in the second quarter, representing an increase of 45% over the first quarter of 2007, with approximately 86% of this amount related to the Civitas acquisition. Over the past year, the Company's loan portfolio has increased 62% to $2,327,149,000. "Margins remain a challenge in this environment, especially considering some high-cost deposits acquired in the Civitas transaction, but we expect scheduled maturities on these accounts over the near term will help manage this challenge," Puckett said. Return on Average Assets (ROA) was 1.21% in the second quarter of 2007 versus 1.26% in the first quarter of 2007 and 1.34% in the second quarter of 2006. Return on Average Equity (ROE) was 11.25% in the second quarter of 2007 compared with 11.93% in the first quarter of 2007 and 12.43% in the second quarter of 2006. Return on Average Tangible Equity (ROTE) (average shareholders' equity less goodwill and intangible assets) was 17.92% in the second quarter of 2007 versus 14.99% in the first quarter of 2007 and 15.99% in the year-earlier quarter. Net interest income for the second quarter increased 29% to $22,933,000 from $17,773,000 in the year-earlier period, driven by a 38% or $535,000,000 quarter-over-quarter increase in average loans outstanding, of which approximately $225,000,000 related to the Company's May acquisition of Civitas, with the remainder reflecting organic growth. Net interest income for the first six months of 2007 increased 19% to $41,754,000 from $34,959,000 in the year-earlier period. The quarter's provision for loan losses rose 1% to $1,259,000 from $1,244,000 in the second quarter of last year, underscoring the continued improvements in asset quality witnessed by the Company. For the first half of 2007, the provision for loan losses declined 3% to $2,233,000 from $2,308,000 in the same period last year. Net interest margin declined 33 basis points on a linked-quarter basis to 4.37% in the second quarter of 2007 while, on a year-over-year basis, net interest margin declined 44 basis points from 4.81% in the second quarter of 2006. This margin compression primarily reflected the impact of higher-cost funding associated with deposits acquired in the Civitas transaction as well as the ongoing challenges of the current interest rate environment. Net interest margin for the first half of 2007 was 4.51%, down 30 basis points from the same period in 2006. Non-interest income for the second quarter was $6,483,000, up 29% from $5,028,000 in the second quarter last year. For the first six months of 2007, non-interest income rose 21% to $11,882,000 from $9,783,000 in the comparable period of 2006. Non-interest expenses totaled $16,709,000 in the second quarter, including one-time merger expenses of $450,000, up 32% from $12,679,000 in the same period a year ago. The Company's efficiency ratio was 56.80% in the second quarter compared with 57.98% in the first quarter of 2007 and was up from 55.61% in the second quarter of 2006 due to ongoing expansion initiatives since mid-2006. Non-interest expenses increased 21% to $30,751,000 in the first half of 2007 from $25,385,000 in the same period a year ago. The Company's efficiency ratio for the first half of 2007 was 57.33% versus 56.74% in the first six months of 2006. Puckett concluded, "GreenBank's commitment to being 'Tennessee's Most Convenient Bank' continues to resonate in our markets as evidenced by a net gain of 3,216 checking account customers during the second quarter, excluding the Civitas purchase. We will introduce our High Performance Checking program as well as extended hours, including Sunday banking, at the former Cumberland Bank branches in September. As always, expense management remains a priority throughout the Company." Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.927 billion, is the holding company for GreenBank. GreenBank, which traces its origin to 1890, has more than 60 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 Reports on Form 10-Q for the quarter ended March 31, 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 Six Months Ended ----------------------------- --------------------- June 30, March 31, June 30, June 30, June 30, 2007 2007 2006 2007 2006 -------- --------- ---------- ---------- ---------- Interest income $41,783 $32,638 $28,489 $74,421 $55,256 Interest expense 18,850 13,817 10,716 32,667 20,297 -------- --------- ---------- ---------- ---------- Net interest income 22,933 18,821 17,773 41,754 34,959 Provision for loan losses 1,259 974 1,244 2,233 2,308 -------- --------- ---------- ---------- ---------- Net interest income after provision for loan losses 21,674 17,847 16,529 39,521 32,651 Non-interest income 6,483 5,399 5,028 11,882 9,783 Non-interest expense 16,709 14,042 12,679 30,751 25,385 -------- --------- ---------- ---------- ---------- Income before income taxes 11,448 9,204 8,878 20,652 17,049 Income taxes 4,362 3,588 3,395 7,950 6,470 -------- --------- ---------- ---------- ---------- Net income $7,086 $5,616 $5,483 $12,702 $10,579 ======== ========= ========== ========== ========== Comprehensive income $4,357 $5,657 $5,498 $10,014 $10,587 ======== ========= ========== ========== ========== Earnings per share: Basic $0.63 $0.57 $0.56 $1.20 $1.08 ======== ========= ========== ========== ========== Diluted $0.62 $0.57 $0.55 $1.19 $1.07 ======== ========= ========== ========== ========== Weighted average shares: Basic 11,322 9,815 9,786 10,573 9,778 ======== ==================== ========== ========== Diluted 11,396 9,910 9,898 10,648 9,892 ======== ==================== ========== ========== Dividends declared per share $0.13 $0.13 $0.12 $0.26 $0.24 ======== ==================== ========== ========== June 30, Dec. 31, June 30, 2007 2006 2006 ---------- ---------- ---------- Total assets $2,927,298 $1,772,654 $1,665,630 Cash and cash equivalents 71,814 70,640 63,974 Investment securities 255,077 47,340 54,076 Loans, net of unearned interest 2,327,149 1,539,629 1,437,935 Allowance for loan losses 32,935 22,302 20,834 Deposits 2,069,749 1,332,505 1,283,606 Shareholders' equity 311,405 184,471 176,889 Tangible shareholders' equity(1) 153,247 145,931 137,808 Book value per share 24.09 18.80 18.07 Tangible book value per share(1) 11.85 14.87 14.08 (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. GREEN BANKSHARES, INC. Condensed Consolidated Balance Sheets June 30, 2007, December 31, 2006 and June 30, 2006 (Dollars in thousands except share and per share data) (Unaudited) (Unaudited) June 30, Dec. 31, June 30, 2007 2006(1) 2006 ----------- ---------- ----------- ASSETS --------------------------------- Cash and due from banks $ 70,807 $ 44,657 $ 44,358 Federal funds sold & other 1,007 25,983 19,616 Securities available-for-sale ("AFS") 242,882 37,740 44,457 Securities held-to-maturity (with a market value of $1,347, $2,544 and $2,696 on June 30, 2007, December 31, 2006 and June 30, 2006) 1,358 2,545 2,740 FHLB, Bankers Bank and other stock, at cost 10,837 7,055 6,879 Loans held for sale 10,705 1,772 2,054 Loans, net of unearned interest 2,327,149 1,539,629 1,437,935 Allowance for loan losses (32,935) (22,302) (20,834) Bank premises and equipment, net of accumulated depreciation 79,957 57,258 52,735 Goodwill and other intangible assets 158,158 38,540 39,081 Other assets 57,373 39,777 36,609 ----------- ---------- ----------- Total Assets $ 2,927,298 $1,772,654 $ 1,665,630 =========== ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------------------- Deposits $ 2,069,749 $1,332,505 $ 1,283,606 Federal funds purchased 41,862 20,000 26,000 Repurchase agreements 83,598 22,165 25,133 FHLB advances and notes payable 287,983 177,571 123,281 Subordinated debentures 88,662 13,403 13,403 Accrued interest payable and other liabilities 44,039 22,539 17,318 ----------- ---------- ----------- Total Liabilities 2,615,893 1,588,183 1,488,741 ----------- ---------- ----------- SHAREHOLDERS' EQUITY --------------------------------- Common Stock: $2 par value, 20,000,000 shares authorized; 12,927,407, 9,810,867 and 9,788,145 shares outstanding 25,855 19,622 19,577 Paid in Capital 184,672 71,828 71,285 Retained Earnings 103,695 93,150 86,389 Accumulated Other Comprehensive Income (Loss) (2,817) (129) (362) ----------- ---------- ----------- Total Shareholders' Equity 311,405 184,471 176,889 ----------- ---------- ----------- Total Liabilities & Shareholders' Equity $ 2,927,298 $1,772,654 $ 1,665,630 =========== ========== =========== (1) Derived from Audited Consolidated Financial Statements. GREEN BANKSHARES, INC. Condensed Consolidated Statements of Income and Comprehensive Income Three Months Ended June 30, 2007, March 31, 2006 and June 30, 2006 and Six Months Ended June 30, 2007 and 2006 (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, 2007 2007 2006 2007 2006 ---------- --------- --------- ---------- --------- Interest Income: ------------------ Interest and Fees on Loans $39,681 $31,915 $27,781 $71,596 $53,881 Interest on Investment Securities 2,090 708 649 2,798 1,280 Interest on Federal Funds Sold and Interest- earning Deposits 12 15 59 27 95 ---------- --------- --------- ---------- --------- Total Interest Income 41,783 32,638 28,489 74,421 55,256 ---------- --------- --------- ---------- --------- Interest Expense: ------------------ Interest on Deposits 15,012 11,153 8,647 26,165 16,689 Interest on Borrowings 3,838 2,664 2,069 6,502 3,608 ---------- --------- --------- ---------- --------- Total Interest Expense 18,850 13,817 10,716 32,667 20,297 ---------- --------- --------- ---------- --------- Net Interest Income 22,933 18,821 17,773 41,754 34,959 Provision for Loan Losses 1,259 974 1,244 2,233 2,308 ---------- --------- --------- ---------- --------- Net Interest Income after Provision for Loan Losses 21,674 17,847 16,529 39,521 32,651 ---------- --------- --------- ---------- --------- Noninterest Income: ------------------ Service Charges, Commissions and Fees 5,395 4,289 4,001 9,684 7,232 Other Income 1,088 1,110 1,027 2,198 2,551 ---------- --------- --------- ---------- --------- Total Noninterest Income 6,483 5,399 5,028 11,882 9,783 ---------- --------- --------- ---------- --------- Noninterest Expense: ------------------ Salaries and Benefits 8,472 7,458 6,266 15,930 12,657 Occupancy and Furniture and Equipment Expense 2,626 2,096 2,050 4,722 4,109 Other Expenses 5,611 4,488 4,363 10,099 8,619 ---------- --------- --------- ---------- --------- Total Noninterest Expense 16,709 14,042 12,679 30,751 25,385 ---------- --------- --------- ---------- --------- Income Before Income Taxes 11,448 9,204 8,878 20,652 17,049 Income Taxes 4,362 3,588 3,395 7,950 6,470 ---------- --------- --------- ---------- --------- Net Income $7,086 $5,616 $5,483 $12,702 $10,579 ========== ========= ========= ========== ========= Comprehensive Income $4,357 $5,657 $5,498 $10,014 $10,587 ========== ========= ========= ========== ========= Per Share of Common Stock: ------------------ Basic Earnings $0.63 $0.57 $0.56 $1.20 $1.08 ========== ========= ========= ========== ========= Diluted Earnings $0.62 $0.57 $0.55 $1.19 $1.07 ========== ========= ========= ========== ========= Dividends $0.13 $0.13 $0.12 $0.26 $0.24 ========== ========= ========= ========== ========= Weighted Average Shares Outstanding: ------------------ Basic 11,321,822 9,815,452 9,785,936 10,572,798 9,778,288 ========== ========= ========= ========== ========= Diluted 11,395,518 9,910,315 9,897,987 10,647,638 9,891,817 ========== ========= ========= ========== ========= GREEN BANKSHARES, INC. Consolidated Financial Highlights (UNAUDITED) (Dollars in thousands except share and per share data) ---------------------------------------------------------------------- June 30, Dec. 31, % 2007 2006 Change ---------- ---------- ------- Financial Condition Data: ------------------------------------ Assets $2,927,298 $1,772,654 65.14% Loans, net of unearned interest 2,327,149 1,539,629 51.15% Cash and investments 325,884 91,997 254.23% Federal funds sold 1,007 25,983 -96.12% Deposits 2,069,749 1,332,505 55.33% Federal funds purchased 41,862 20,000 - FHLB advances and notes payable 287,983 177,571 62.18% Subordinated debentures 88,662 13,403 561.51% Federal funds purchased and repurchase agreements 83,598 22,165 277.16% Shareholders' equity 311,405 184,471 68.81% Tangible shareholders' equity(1) 153,247 145,931 5.01% Ratios: ------------------------------------ Book value per share $24.09 $18.80 28.14% Tangible book value per share(1) $11.85 $14.87 -20.31% Average equity to average assets 10.67% 10.78% -1.02% Dividend payout ratio 22.03% 29.49%(2)-25.29% (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 Six Months Ended June 30, June 30, -------------------- -------------------- % % 2007 2006 Change 2007 2006 Change ---------- --------- ------- ---------- --------- ------ Operating Data: -------------- Total Interest Income $41,783 $28,489 46.66% $74,421 $55,256 34.68% Total Interest Expense 18,850 10,716 75.91% 32,667 20,297 60.94% ---------- --------- ------- ---------- --------- ------ Net Interest Income 22,933 17,773 29.03% 41,754 34,959 19.44% Provision for Loan Losses 1,259 1,244 1.21% 2,233 2,308 -3.25% ---------- --------- ------- ---------- --------- ------ Net Interest Income After Provision for Loan Losses 21,674 16,529 31.13% 39,521 32,651 21.04% Non-Interest Income 6,483 5,028 28.94% 11,882 9,783 21.46% Non-Interest Expense 16,709 12,679 31.78% 30,751 25,385 21.14% ---------- --------- ------- ---------- --------- ------ Income Before Income Taxes 11,448 8,878 28.95% 20,652 17,049 21.13% ---------- --------- ------- ---------- --------- ------ Income Tax Expense 4,362 3,395 28.48% 7,950 6,470 22.87% ---------- --------- ------- ---------- --------- ------ Net Income $7,086 $5,483 29.24% $12,702 $10,579 20.07% ========== ========= ======= ========== ========= ====== Comprehensive Income $4,357 $5,498 -20.75% $10,014 $10,587 -5.41% ========== ========= ======= ========== ========= ====== Per Share of Common Stock: -------------- Basic Earnings $0.63 $0.56 12.50% $1.20 $1.08 11.11% ========== ========= ======= ========== ========= ====== Diluted Earnings $0.62 $0.55 12.73% $1.19 $1.07 11.21% ========== ========= ======= ========== ========= ====== Dividends $0.13 $0.12 8.33% $0.26 $0.24 8.33% ========== ========= ======= ========== ========= ====== Weighted Average Shares Outstanding: -------------- Basic 11,321,822 9,785,936 10,572,798 9,778,288 ========== ========= ========== ========= Diluted 11,395,518 9,897,987 10,647,638 9,891,817 ========== ========= ========== ========= Three Months Ended Six Months Ended --------------------------- June 30, Dec. 31, June 30, June 30, -------------- 2007 2006 2006 2007 2006 -------- -------- -------- ------ ------ Key Financial Ratios: -------------------------- Return on Average Assets 1.21% 1.20% 1.34% 1.23% 1.31% Return on Average Shareholders' Equity 11.25% 11.16% 12.43% 11.53% 12.15% Return on Average Tangible Shareholders' Equity(1) 17.92% 14.10% 15.99% 16.49% 15.70% Interest Rate Spread 3.91% 4.16% 4.36% 4.04% 4.39% Net Interest Margin 4.37% 4.66% 4.81% 4.51% 4.81% Efficiency Ratio 56.80% 58.73% 55.61% 57.33% 56.74% (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. June 30, Dec. 31, June 30, 2007 2006 2006 -------- -------- -------- Asset Quality Ratios: ------------------------------------------- Nonperforming Loans as a Percentage of Total Loans, 0.21% 0.23% 0.34% net of Unearned Income Nonperforming Assets as a Percentage of Total Assets 0.20% 0.29% 0.47% Allowance for Loan Losses as a Percentage of Total Loans, net of Unearned Income 1.42% 1.45% 1.45% Allowance for Loan Losses as a Percentage of Nonperforming Loans 674.48% 635.93% 426.84% Net Charge-Offs to Average Total Loans, Net of Unearned Income 0.04% 0.20% 0.09% GREEN BANKSHARES, INC. Consolidated Financial Highlights June 30, 2007 (UNAUDITED) Nonperforming Assets and Net Charge-offs ------------------------------------------- As of and for the three months ended June Bank Other Total 30, 2007 ------------------------------------------- ------- ------- ------- Loans past due 90 days and still accruing $ 443 $ - $ 443 Nonaccrual loans 3,905 535 4,440 Other real estate owned and repossessed assets 532 360 892 ------- ------- ------- Total nonperforming assets $ 4,880 $ 895 $ 5,775 ======= ======= ======= YTD net charge-offs $ 124 $ 498 $ 622 ======= ======= ======= As of and for the three months ended June Bank Other Total 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 ======= ======= ======= YTD net charge-offs $ 819 $ 394 $ 1,213 ======= ======= ======= As of and for the year ended December 31, Bank Other Total 2006 ------------------------------------------- ------- ------- ------- 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 Bank Other Consolidated June 30, 2007 ------------------------------------ ---------- --------- ------------ Nonperforming loans as a percentage of total loans, net of unearned income 0.19% 1.47% 0.21% Nonperforming assets as a percentage of total assets 0.17% 1.62% 0.20% Allowance for loan losses as a percentage of total loans, net of unearned income 1.30% 8.02% 1.42% Allowance for loan losses as a percentage of nonperforming loans 690.29% 545.98% 674.48% YTD net charge-offs to average total loans, net of unearned income 0.01% 1.42% 0.04% 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 loans 410.68% 596.70% 426.84% YTD net charge-offs to average total loans, net of unearned income 0.06% 1.26% 0.09% As of and for the year ended Bank Other Consolidated December 31, 2006 ------------------------------------ ---------- --------- ------------ 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 June 30, 2007 Three Months Ended June 30, ----------------------------------------------------- 2007 2006 -------------------------- -------------------------- Average Average Average Average Balance Interest Rate Balance Interest Rate --------- -------- ------- --------- -------- ------- Interest-earning assets: ----------------- Loans 1,962,127 39,681 8.11% 1,426,984 27,781 7.81% Investment securities 154,110 2,090 5.44% 54,571 649 4.77% Other short-term investments 1,121 12 4.29% 4,476 59 5.29% Fully taxable equivalent adjustment 114 38 --------- -------- ------- --------- -------- ------- Total interest- earning assets2,117,358 41,897 7.94% 1,486,031 28,527 7.70% --------- -------- ------- --------- -------- ------- Non-interest earning assets 230,119 146,520 --------- --------- Total assets 2,347,477 1,632,551 ========= ========= Interest-bearing liabilities: ----------------- Deposits: ----------------- Now accounts, money market and savings 693,235 4,865 2.81% 505,383 2,680 2.13% Time deposits 874,466 10,147 4.65% 625,457 5,967 3.83% --------- -------- ------- --------- -------- ------- Total interest bearing- deposits 1,567,701 15,012 3.84% 1,130,840 8,647 3.07% --------- -------- ------- --------- -------- ------- Securities sold under repurchase and short-term borrowings 67,307 768 4.58% 34,783 397 4.58% Notes payable 243,729 3,070 5.05% 123,199 1,672 5.44% --------- -------- ------- --------- -------- ------- Total interest- bearing liabilities 1,878,737 18,850 4.02% 1,288,822 10,716 3.34% --------- -------- ------- --------- -------- ------- Non-Interest Bearing Liabilities: ----------------- Demand Deposits 180,185 148,937 Other Liabilities 36,566 18,396 --------- --------- Total Non- Interest Bearing Liabilities 216,751 167,333 --------- --------- Total liabilities 2,095,488 1,456,155 --------- --------- Shareholders' equity 251,989 176,396 Total liabilities & shareholders' equity 2,347,477 1,632,551 ========= ========= Net interest income 23,047 17,811 ======== ======== Interest rate spread 3.91% 4.36% ======= ======= Net yield on interest-earning assets (net interest margin) 4.37% 4.81% ======= ======= Balance 0 0 ========= ========= Six Months Ended June 30, ----------------------------------------------------- 2007 2006 -------------------------- -------------------------- Average Average Average Average Balance Interest Rate Balance Interest Rate --------- -------- ------- --------- -------- ------- Interest-earning assets: ----------------- Loans 1,768,459 71,596 8.16% 1,409,788 53,881 7.71% Investment securities 103,176 2,798 5.47% 55,503 1,280 4.65% Other short-term investments 1,189 27 4.58% 3,928 95 4.88% Fully taxable equivalent adjustment 146 77 --------- -------- ------- --------- -------- ------- Total interest- earning assets1,872,824 74,567 8.03% 1,469,219 55,333 7.59% --------- -------- ------- --------- -------- ------- Non-interest earning assets 191,240 146,829 --------- --------- Total assets 2,064,064 1,616,048 ========= ========= Interest-bearing liabilities: ----------------- Deposits: ----------------- Now accounts, money market and savings 617,363 8,411 2.75% 513,060 5,256 2.07% Time deposits 774,411 17,754 4.62% 625,750 11,433 3.68% --------- -------- ------- --------- -------- ------- Total interest bearing- deposits 1,391,774 26,165 3.79% 1,138,810 16,689 2.96% --------- -------- ------- --------- -------- ------- Securities sold under repurchase and short-term borrowings 46,696 1,054 4.55% 28,267 604 4.31% Notes payable 214,682 5,448 5.12% 112,474 3,004 5.39% --------- -------- ------- --------- -------- ------- Total interest- bearing liabilities 1,653,152 32,667 3.98% 1,279,551 20,297 3.20% --------- -------- ------- --------- -------- ------- Non-Interest Bearing Liabilities: ----------------- Demand Deposits 162,782 144,515 Other Liabilities 27,820 17,856 --------- --------- Total Non- Interest Bearing Liabilities 190,602 162,371 --------- --------- Total liabilities 1,843,754 1,441,922 --------- --------- Shareholders' equity 220,310 174,126 Total liabilities & shareholders' equity 2,064,064 1,616,048 ========= ========= Net interest income 41,900 35,036 ======== ======== Interest rate spread 4.04% 4.39% ======= ======= Net yield on interest-earning assets (net interest margin) 4.51% 4.81% ======= ======= Balance 0 0 ========= ========= GREEN BANKSHARES, INC. Consolidated Financial Highlights June 30, 2007 (UNAUDITED) ---------------------------------------------------------------------- June 30, 2007 December 31, 2006 ------------------ ------------------ Loans Balance % Balance % %Change --------------------- ---------- ------- ---------- ------- --------- Commercial $ 344,470 14.72% $ 258,998 16.70% 33.00% Commercial real estate 1,486,967 63.54% 921,190 59.38% 61.42% Residential real estate 405,494 17.33% 281,629 18.16% 43.98% Consumer 100,441 4.29% 87,111 5.62% 15.30% Other 2,818 0.12% 2,203 0.14% 27.92% ---------- ------- ---------- ------- --------- 2,340,190 100.00% 1,551,131 100.00% 50.87% ======= ======= ========= Less: Unearned interest income (13,041) (11,502) ---------- ---------- Total $2,327,149 $1,539,629 ========== ========== Loan Balances by Geographical Region and Operating Subsidiaries ---------------------------------------------------------------------- June 30, 2007 December 31, 2006 ------------------ ------------------ Loan % to Loan % to Total Total Balance Loans Balance Loans %Change ---------- ------- ---------- ------- --------- Northeastern Tennessee Region(1) $ 495,117 21.28% $ 465,567 30.24% 6.35% East Tennessee Region 728,404 31.30% 625,632 40.64% 16.43% Middle Tennessee Region 1,067,197 45.86% 414,379 26.91% 157.54% GCB Acceptance Corporation 15,198 0.65% 13,444 0.87% 13.05% Superior Financial Services, Inc. 21,233 0.91% 20,607 1.34% 3.04% ---------- ------- ---------- ------- --------- Totals $2,327,149 100.00% $1,539,629 100.00% 51.15% ========== ======= ========== ======= ========= (1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina ---------------------------------------------------------------------- ---------------------------------------------------------------------- June 30, 2007 December 31, 2006 ------------------ ------------------ Deposits Balance % Balance % %Change --------------------- ---------- ------- ---------- ------- --------- Non-interest bearing demand $ 218,556 10.56% $ 152,634 11.45% 43.19% Interest bearing demand 522,685 25.25% 304,828 22.88% 71.47% Money market and savings 248,160 11.99% 194,068 14.56% 27.87% Retail time 548,683 26.51% 445,816 33.46% 23.07% Jumbo time 531,665 25.69% 235,159 17.65% 126.09% ---------- ------- ---------- ------- --------- Total $2,069,749 100.00% $1,332,505 100.00% 55.33% ========== ======= ========== ======= ========= Deposit Balances by Geographical Region and Operating Subsidiaries ---------------------------------------------------------------------- June 30, 2007 December 31, 2006 ------------------ ------------------ Balance % Balance % %Change ---------- ------- ---------- ------- --------- Northeastern Tennessee Region(1) $ 716,169 34.60% $ 613,257 46.02% 16.78% East Tennessee Region 279,919 13.52% 281,094 21.10% -0.42% Middle Tennessee Region 1,073,661 51.88% 438,154 32.88% 145.04% GCB Acceptance Corporation - 0.00% - 0.00% - Superior Financial Services, Inc. - 0.00% - 0.00% - ---------- ------- ---------- ------- --------- $2,069,749 100.00% $1,332,505 100.00% 55.33% ========== ======= ========== ======= ========= (1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina ---------------------------------------------------------------------- CONTACT: Green Bankshares, Inc. James E. Adams Executive Vice President and Chief Financial Officer 423-278-3050