-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KW6TBe+FjgTtOuIWUKEbks4WfOjNqdwfBtn/1Q+BH8BxXe8J054MjpRWNT0PxgXo NWAs1goQjm/+wP9BlGPjPw== 0001157523-07-010074.txt : 20071023 0001157523-07-010074.hdr.sgml : 20071023 20071023085541 ACCESSION NUMBER: 0001157523-07-010074 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071022 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071023 DATE AS OF CHANGE: 20071023 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREEN BANKSHARES, INC. CENTRAL INDEX KEY: 0000764402 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 621222567 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14289 FILM NUMBER: 071184554 BUSINESS ADDRESS: STREET 1: 100 NORTH MAIN STREET CITY: GREENEVILLE STATE: TN ZIP: 37743-4992 BUSINESS PHONE: 4236395111 MAIL ADDRESS: STREET 1: P O BOX 1120 CITY: GREENEVILLE STATE: TN ZIP: 37744-1120 FORMER COMPANY: FORMER CONFORMED NAME: GREENE COUNTY BANCSHARES INC DATE OF NAME CHANGE: 19920703 8-K 1 a5524259.txt GREEN BANKSHARES, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 22, 2007 GREEN BANKSHARES, INC. ---------------------- (Exact name of Registrant as specified in its charter) Tennessee 0-14289 62-1222567 --------- ------- ---------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 100 North Main Street, Greeneville, Tennessee 37743-4992 -------------------------------------------------------- (Address of principal executive offices) (423) 639-5111 -------------- Registrant's telephone number, including area code Not Applicable -------------- (Former Name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 22, 2007, Green Bankshares, Inc. (the "Company") announced its financial results for the third quarter and nine months ended September 30, 2007. The full text of the press release is set forth in Exhibit 99.1 hereto. The information in this Form 8-K and the attached Exhibit is being furnished pursuant to Item 2.02 "Results of Operations and Financial Condition" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. ITEM 7.01. REGULATION FD DISCLOSURE. On October 22, 2007, the Company announced its financial results for the third quarter and nine months ended September 30, 2007. The full text of the press release is set forth in Exhibit 99.1 hereto. The information in this Form 8-K and the attached Exhibit is being furnished pursuant to Item 7.01 "Regulation FD Disclosure" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits. 99.1 Press Release dated October 22, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GREEN BANKSHARES, INC. Date: October 23, 2007 By: /s/ James E. Adams ----------------------------------------- James E. Adams Executive Vice President and Chief Financial Officer (Duly Authorized Representative) EXHIBIT INDEX Exhibit Number Description of Exhibit(s) - ------ ------------------------- 99.1 Copy of press release issued by the Company on October 22, 2007. EX-99.1 2 a5524259-ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 Green Bankshares Reports Record Third Quarter Earnings, up 23% GREENEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 22, 2007--Green Bankshares, Inc. (NASDAQ: GRNB), the second largest bank holding company headquartered in the State of Tennessee, today announced record earnings for the third quarter and nine-month period ended September 30, 2007. On a diluted basis, third quarter 2007 earnings increased 23% to $0.69 from $0.56 in the same quarter a year ago, while for the first nine months, earnings rose almost 16% to $1.89 from the previous record level of $1.63 set in the comparable period of 2006. Year-to-date earnings were affected modestly by expenses associated with the Company's acquisition of Civitas BankGroup, which closed during the second quarter of this year, along with costs incurred in connection with the strategic initiative to re-brand all of the Company's banking operations under the GreenBank name. Net income for the third quarter increased over 62% to $8,914,000 compared with $5,509,000 in the year-earlier quarter. For the current nine-month period, earnings reached $21,616,000, up more than 34% from $16,088,000 in the comparable 2006 period. Commenting on the Company's report, Stan Puckett, Chairman and Chief Executive Officer, said, "We are pleased with our third quarter performance, which is the direct result of the 846 talented and dedicated GreenBank associates. This quarter also represents the first interim reporting period that fully reflects the Civitas acquisition without the expenses associated with the assimilation process. These results reflect record levels of core earnings, underscoring our continued strong operating performance and driving solid profitability ratios." For the third quarter, Return on Average Assets (ROA) improved to 1.22% from 1.21% in the second quarter of 2007, compared with 1.32% in the third quarter of 2006. Return on Average Equity (ROE) was 11.08% in the current quarter, down slightly from an ROE of 11.25% in the second quarter of this year and 12.22% in the third quarter of last year, due to the issuance of additional shares in the Civitas acquisition. Puckett further noted, "With the robust organic loan growth experienced during both the first and second quarters of this year, we elected to curtail loan expansion during the third quarter to better manage balance sheet growth and avoid placing undue pressure on net interest margins. With these efforts, our loan portfolio declined modestly from second quarter 2007 levels, but was still more than 56% ahead of the third quarter of 2006." The Company's credit quality remained strong in the third quarter as non-performing loans relative to loans, net of unearned income, totaled 0.26% versus 0.21% in the second quarter of 2007 and 0.33% in the year-earlier quarter. Net charge-offs in the third quarter totaled 0.07% of average loans versus 0.04% in the second quarter of 2007 and 0.15% in the year-earlier period. Net interest income for the third quarter increased 47% to $27,293,000 from $18,530,000 in the year-earlier period, driven by a 59% or $863,000,000 increase in average loans outstanding versus the third quarter last year, of which approximately $603,000,000 related to the Company's May 2007 acquisition of Civitas. The quarter's provision for loan losses declined 13% to $1,444,000 from $1,661,000 in the third quarter of last year, reflecting ongoing improvements in asset quality, while the allowance for loan losses relative to loans, net of unearned income, remained constant at 1.45%. Net interest income increased 29% to $69,047,000 for the year-to-date period in 2007 compared with $53,489,000 in the same period last year. The Company's provision for loan losses declined 7% to $3,677,000 in the first nine months of 2007 from $3,969,000 in the year-earlier period. Net interest margin declined 15 basis points to 4.22% in the third quarter of 2007 versus 4.37% in the second quarter of 2007 and was down 62 basis points from 4.84% in the year-earlier quarter. Net interest margin for the first nine months of 2007 was 4.39%, down 43 basis points from 4.82% in the same period last year. The margin compression experienced in the second and third quarters of 2007 primarily reflects the impact of higher-cost funding associated with deposits acquired in the Civitas transaction. Non-interest income increased 48% in the third quarter to $7,688,000 from $5,191,000 in the same quarter last year, while non-interest income for the year-to-date period rose 31% to $19,570,000 from $14,974,000 in the comparable 2006 period. These advances primarily reflected continued growth in the number of customer checking accounts - 3,465 net new accounts in the third quarter alone - in response to the Company's High Performance Checking Account product. Non-interest expense totaled $19,010,000 in the third quarter, up 45% from $13,136,000 in the same period a year ago. The Company's efficiency ratio was 54.34% in the third quarter, reflecting an improvement from 56.80% in the second quarter of 2007 and 55.38% in the third quarter of 2006. Non-interest expenses increased 29% to $49,761,000 in the first nine months of 2007 from $38,521,000 in the year-earlier period. The Company's efficiency ratio for the first nine months of 2007 improved to 56.15% versus 56.27% for the first nine months of 2006. Puckett concluded, "We expect fourth quarter earnings per diluted share to be in the range of $0.69 to $0.71. Additionally, we anticipate that 2008 earnings per diluted share will increase to the range of $2.80 to $2.82." At September 30, 2007, the Company's total assets increased 67% to $2,955,747,000 from $1,772,654,000 at December 31, 2006, and were 71% ahead of the $1,727,268,000 in total assets reported as of September 30, 2006. Net loans increased 51% to $2,326,990,000 at September 30, 2007, from $1,539,629,000 at December 31, 2006, and were 56% higher than net loans of $1,493,878,000 at September 30, 2006. Deposits increased 52% to $2,026,665,000 at September 30, 2007, from $1,332,505,000 at December 31, 2006, and were 63% ahead of deposits of $1,242,810,000 as of September 30, 2006. Total shareholders' equity increased 74% to $321,174,000 at September 30, 2007, versus $184,471,000 at December 31, 2006, and was 77% higher than total shareholders' equity of $181,659,000 at September 30, 2006. Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.956 billion, is the holding company for GreenBank. GreenBank, which traces its origin to 1890, has 65 branches across East and Middle Tennessee, one branch each in Bristol, Virginia, and Hot Springs, North Carolina, and a wealth management office in Gallatin, Tennessee. In addition, GreenBank also conducts separate businesses through three wholly owned subsidiaries: Superior Financial Services, Inc., a consumer finance company; GCB Acceptance Corporation, a consumer finance company specializing in automobile lending; and Fairway Title Co., a title insurance company. Certain matters discussed in this news release are not historical facts but are "forward-looking statements" within the meaning of and are furnished pursuant to the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risk and uncertainty and actual results could differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Risks and uncertainties related to the Company's business are discussed in the Company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2006, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2007. The Company undertakes no obligation to update forward-looking statements. GREEN BANKSHARES, INC. Unaudited Financial Highlights (In thousands, except per share amounts) Three Months Ended Nine Months Ended --------------------------- ------------------- Sept. 30, June 30, Sept 30, Sept. 30, Sept. 30, 2007 2007 2006 2007 2006 --------- -------- -------- --------- --------- Interest income $ 52,294 $ 41,783 $ 30,367 $126,715 $ 85,623 Interest expense 25,001 18,850 11,837 57,668 32,134 --------- -------- -------- --------- --------- Net interest income 27,293 22,933 18,530 69,047 53,489 Provision for loan losses 1,444 1,259 1,661 3,677 3,969 --------- -------- -------- --------- --------- Net interest income after provision for loan losses 25,849 21,674 16,869 65,370 49,520 Non-interest income 7,688 6,483 5,191 19,570 14,974 Non-interest expense 19,010 16,709 13,136 49,761 38,521 --------- -------- -------- --------- --------- Income before income taxes 14,527 11,448 8,924 35,179 25,973 Income taxes 5,613 4,362 3,415 13,563 9,885 --------- -------- -------- --------- --------- Net income $ 8,914 $ 7,086 $ 5,509 $ 21,616 $ 16,088 ========= ======== ======== ========= ========= Comprehensive income $ 11,167 $ 4,357 $ 5,672 $ 21,181 $ 16,259 ========= ======== ======== ========= ========= Earnings per share: Basic $ 0.69 $ 0.63 $ 0.56 $ 1.90 $ 1.64 ========= ======== ======== ========= ========= Diluted $ 0.69 $ 0.62 $ 0.56 $ 1.89 $ 1.63 ========= ======== ======== ========= ========= Weighted average shares: Basic 12,921 11,322 9,790 11,362 9,782 ========= ======== ======== ========= ========= Diluted 13,009 11,396 9,900 11,455 9,893 ========= ======== ======== ========= ========= Dividends declared per share $ 0.13 $ 0.13 $ 0.12 $ 0.39 $ 0.36 ========= ======== ======== ========= ========= Sept. 30, Dec. 31, Sept. 30, 2007 2006 2006 ---------- ---------- ---------- Total assets $2,955,747 $1,772,654 $1,727,268 Cash and cash equivalents 101,098 70,640 69,478 Investment securities 251,024 47,340 52,796 Loans, net of unearned income 2,326,990 1,539,629 1,493,878 Allowance for loan losses 33,703 22,302 21,616 Deposits 2,026,665 1,332,505 1,242,810 Shareholders' equity 321,174 184,471 181,659 Tangible shareholders' equity (1) 159,772 145,931 142,848 Book value per share 24.85 18.80 18.54 Tangible book value per share (1) 12.36 14.87 14.58 (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. GREEN BANKSHARES, INC. Condensed Consolidated Balance Sheets September 30, 2007, December 31, 2006 and September 30, 2006 (Dollars in thousands except share and per share data) (Unaudited) (Unaudited) September 30, December 31, September 30, 2007 2006 (1) 2006 ------------- ------------ ------------- ASSETS - -------------------------- Cash and due from banks $ 61,090 $ 44,657 $ 41,474 Federal funds sold & other 40,008 25,983 28,004 Securities available-for- sale ("AFS") 237,907 37,740 43,142 Securities held-to- maturity (with a market value of $1,339, $2,544 and $2,674 on September 30, 2007, December 31, 2006 and September 30, 2006) 1,358 2,545 2,690 FHLB, Bankers Bank and other stock, at cost 11,759 7,055 6,964 Loans held for sale 5,662 1,772 2,195 Loans, net of unearned income 2,326,990 1,539,629 1,493,878 Allowance for loan losses (33,703) (22,302) (21,616) Bank premises and equipment, net of accumulated depreciation 82,641 57,258 54,125 Goodwill and other intangible assets 161,402 38,540 38,811 Other assets 60,633 39,777 37,601 ------------- ------------ ------------- Total Assets $ 2,955,747 $ 1,772,654 $ 1,727,268 ============= ============ ============= LIABILITIES AND SHAREHOLDERS' EQUITY - -------------------------- Deposits $ 2,026,665 $ 1,332,505 $ 1,242,810 Federal funds purchased 41,800 20,000 75,000 Repurchase agreements 108,375 22,165 22,601 FHLB advances and notes payable 334,103 177,571 173,058 Subordinated debentures 88,662 13,403 13,403 Accrued interest payable and other liabilities 34,968 22,539 18,737 ------------- ------------ ------------- Total Liabilities 2,634,573 1,588,183 1,545,609 ------------- ------------ ------------- SHAREHOLDERS' EQUITY - -------------------------- Common Stock: $2 par value, 20,000,000 shares authorized; 12,924,529, 9,810,867 and 9,796,349 shares outstanding 25,850 19,622 19,593 Paid in Capital 184,959 71,828 71,542 Retained Earnings 110,929 93,150 90,723 Accumulated Other Comprehensive Income (Loss) (564) (129) (199) ------------- ------------ ------------- Total Shareholders' Equity 321,174 184,471 181,659 ------------- ------------ ------------- Total Liabilities & Shareholders' Equity $ 2,955,747 $ 1,772,654 $ 1,727,268 ============= ============ ============= (1) Derived from Audited Consolidated Financial Statements. GREEN BANKSHARES, INC. Condensed Consolidated Statements of Income and Comprehensive Income Three Months Ended September 30, 2007, June 30, 2007 and September 30, 2006 and Nine Months Ended September 30, 2007 and 2006 (Unaudited) (Dollars in thousands except share and per share data) Three Months Ended ---------------------------------------- September 30, June 30, September 30, 2007 2007 2006 ------------- ---------- ------------- Interest Income: - ---------------------------- Interest and Fees on Loans $ 48,630 $ 39,681 $ 29,600 Interest on Investment Securities 3,642 2,090 752 Interest on Federal Funds Sold and Interest-earning Deposits 22 12 15 ------------- ---------- ------------- Total Interest Income 52,294 41,783 30,367 ------------- ---------- ------------- Interest Expense: - ---------------------------- Interest on Deposits 17,812 15,012 8,828 Interest on Borrowings 7,189 3,838 3,009 ------------- ---------- ------------- Total Interest Expense 25,001 18,850 11,837 ------------- ---------- ------------- Net Interest Income 27,293 22,933 18,530 Provision for Loan Losses 1,444 1,259 1,661 ------------- ---------- ------------- Net Interest Income after Provision for Loan Losses 25,849 21,674 16,869 ------------- ---------- ------------- Noninterest Income: - ---------------------------- Service Charges, Commissions and Fees 6,418 5,395 4,125 Other Income 1,270 1,088 1,066 ------------- ---------- ------------- Total Noninterest Income 7,688 6,483 5,191 ------------- ---------- ------------- Noninterest Expense: - ---------------------------- Salaries and Benefits 9,753 8,472 6,768 Occupancy and Furniture and Equipment Expense 2,852 2,626 2,046 Other Expenses 6,405 5,611 4,322 ------------- ---------- ------------- Total Noninterest Expense 19,010 16,709 13,136 ------------- ---------- ------------- Income Before Income Taxes 14,527 11,448 8,924 Income Taxes 5,613 4,362 3,415 ------------- ---------- ------------- Net Income $ 8,914 $ 7,086 $ 5,509 ============= ========== ============= Comprehensive Income $ 11,167 $ 4,357 $ 5,672 ============= ========== ============= Per Share of Common Stock: - ---------------------------- Basic Earnings $0.69 $0.63 $0.56 ============= ========== ============= Diluted Earnings $0.69 $0.62 $0.56 ============= ========== ============= Dividends $0.13 $0.13 $0.12 ============= ========== ============= Weighted Average Shares Outstanding: - ---------------------------- Basic 12,921,240 11,321,822 9,790,058 ============= ========== ============= Diluted 13,008,733 11,395,518 9,900,396 ============= ========== ============= Nine Months Ended ---------------------------- September 30, September 30, 2007 2006 ------------- ------------- Interest Income: - ---------------------------------------- Interest and Fees on Loans $ 120,226 $ 83,481 Interest on Investment Securities 6,440 2,032 Interest on Federal Funds Sold and Interest-earning Deposits 49 110 ------------- ------------- Total Interest Income 126,715 85,623 ------------- ------------- Interest Expense: - ---------------------------------------- Interest on Deposits 43,977 25,517 Interest on Borrowings 13,691 6,617 ------------- ------------- Total Interest Expense 57,668 32,134 ------------- ------------- Net Interest Income 69,047 53,489 Provision for Loan Losses 3,677 3,969 ------------- ------------- Net Interest Income after Provision for Loan Losses 65,370 49,520 ------------- ------------- Noninterest Income: - ---------------------------------------- Service Charges, Commissions and Fees 16,102 11,357 Other Income 3,468 3,617 ------------- ------------- Total Noninterest Income 19,570 14,974 ------------- ------------- Noninterest Expense: - ---------------------------------------- Salaries and Benefits 25,683 19,425 Occupancy and Furniture and Equipment Expense 7,574 6,155 Other Expenses 16,504 12,941 ------------- ------------- Total Noninterest Expense 49,761 38,521 ------------- ------------- Income Before Income Taxes 35,179 25,973 Income Taxes 13,563 9,885 ------------- ------------- Net Income $ 21,616 $ 16,088 ============= ============= Comprehensive Income $ 21,181 $ 16,259 ============= ============= Per Share of Common Stock: - ---------------------------------------- Basic Earnings $1.90 $1.64 ============= ============= Diluted Earnings $1.89 $1.63 ============= ============= Dividends $0.39 $0.36 ============= ============= Weighted Average Shares Outstanding: - ---------------------------------------- Basic 11,362,422 9,782,255 ============= ============= Diluted 11,455,389 9,893,417 ============= ============= GREEN BANKSHARES, INC. Consolidated Financial Highlights (UNAUDITED) (Dollars in thousands except share and per share data) September 30, December 31, % 2007 2006 Change ------------- ------------ ------- Financial Condition Data: - ------------------------------ Assets $ 2,955,747 $ 1,772,654 66.74% Loans, net of unearned income 2,326,990 1,539,629 51.14% Cash and investments 312,114 91,997 239.27% Federal funds sold 40,008 25,983 53.98% Deposits 2,026,665 1,332,505 52.09% Federal funds purchased 41,800 20,000 - FHLB advances and notes payable 334,103 177,571 88.15% Subordinated debentures 88,662 13,403 561.51% Federal funds purchased and repurchase agreements 108,375 22,165 388.95% Shareholders' equity 321,174 184,471 74.11% Tangible shareholders' equity (1) 159,772 145,931 9.47% Ratios: - ------------------------------ Book value per share $24.85 $18.80 32.18% Tangible book value per share (1) $12.36 $14.87 -16.88% Average equity to average assets 10.80% 10.78% 0.19% Dividend payout ratio 20.53% 29.49%(2) -30.40% (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 September 30, ---------------------- 2007 2006 % Change ---------- ---------- -------- Operating Data: - ------------------------------------- Total Interest Income $ 52,294 $ 30,367 72.21% Total Interest Expense 25,001 11,837 111.21% ---------- ---------- -------- Net Interest Income 27,293 18,530 47.29% Provision for Loan Losses 1,444 1,661 -13.06% ---------- ---------- -------- Net Interest Income After Provision for Loan Losses 25,849 16,869 53.23% Non-Interest Income 7,688 5,191 48.10% Non-Interest Expense 19,010 13,136 44.72% ---------- ---------- -------- Income Before Income Taxes 14,527 8,924 62.79% ---------- ---------- -------- Income Tax Expense 5,613 3,415 64.36% ---------- ---------- -------- Net Income $ 8,914 $ 5,509 61.81% ========== ========== ======== Comprehensive Income $ 11,167 $ 5,672 96.88% ========== ========== ======== Per Share of Common Stock: - ------------------------------------- Basic Earnings $0.69 $0.56 23.21% ========== ========== ======== Diluted Earnings $0.69 $0.56 23.21% ========== ========== ======== Dividends $0.13 $0.12 8.33% ========== ========== ======== Weighted Average Shares Outstanding: - ------------------------------------- Basic 12,921,240 9,790,058 ========== ========== Diluted 13,008,733 9,900,396 ========== ========== Nine Months Ended September 30, ---------------------- 2007 2006 % Change ---------- ---------- -------- Operating Data: - ------------------------------------- Total Interest Income $ 126,715 $ 85,623 47.99% Total Interest Expense 57,668 32,134 79.46% ---------- ---------- -------- Net Interest Income 69,047 53,489 29.09% Provision for Loan Losses 3,677 3,969 -7.36% ---------- ---------- -------- Net Interest Income After Provision for Loan Losses 65,370 49,520 32.01% Non-Interest Income 19,570 14,974 30.69% Non-Interest Expense 49,761 38,521 29.18% ---------- ---------- -------- Income Before Income Taxes 35,179 25,973 35.44% ---------- ---------- -------- Income Tax Expense 13,563 9,885 37.21% ---------- ---------- -------- Net Income $ 21,616 $ 16,088 34.36% ========== ========== ======== Comprehensive Income $ 21,181 $ 16,259 30.27% ========== ========== ======== Per Share of Common Stock: - ------------------------------------- Basic Earnings $1.90 $1.64 15.85% ========== ========== ======== Diluted Earnings $1.89 $1.63 15.95% ========== ========== ======== Dividends $0.39 $0.36 8.33% ========== ========== ======== Weighted Average Shares Outstanding: - ------------------------------------- Basic 11,362,422 9,782,255 ========== ========== Diluted 11,455,389 9,893,417 ========== ========== Three Months Ended ---------------------------- Nine Months Ended Sept. 30, Sept. 30, Dec. 31, Sept. 30, ----------------- 2007 2006 2006 2007 2006 --------- -------- --------- -------- -------- Key Financial Ratios: - ---------------------- Return on Average Assets 1.22% 1.20% 1.32% 1.23% 1.31% Return on Average Shareholders' Equity 11.08% 11.16% 12.22% 11.40% 12.17% Return on Average Tangible Shareholders' Equity (1) 22.32% 14.10% 15.59% 18.59% 15.66% Interest Rate Spread 3.83% 4.16% 4.35% 3.95% 4.37% Net Interest Margin 4.22% 4.66% 4.84% 4.39% 4.82% Efficiency Ratio 54.34% 58.73% 55.38% 56.15% 56.27% (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. September 30, December 31, September 30, 2007 2006 2006 ------------- ------------ ------------- Asset Quality Ratios: - ----------------------------- Nonperforming Loans as a Percentage of Total Loans, net of Unearned Income 0.26% 0.23% 0.33% Nonperforming Assets as a Percentage of Total Assets 0.26% 0.29% 0.42% Allowance for Loan Losses as a Percentage of Total Loans, net of Unearned Income 1.45% 1.45% 1.45% Allowance for Loan Losses as a Percentage of Nonperforming Loans 558.18% 635.93% 442.23% Net Charge-Offs to Average Total Loans, Net of Unearned Income 0.07% 0.20% 0.15% GREEN BANKSHARES, INC. Consolidated Financial Highlights September 30, 2007 (UNAUDITED) Nonperforming Assets and Net Charge-offs - ---------------------------------- As of and for the three months ended September 30, 2007 Bank Other Total - ---------------------------------- --------- --------- ------------ Loans past due 90 days and still accruing $ 168 $ - $ 168 Nonaccrual loans 5,342 528 5,870 Other real estate owned and repossessed assets 1,055 455 1,510 --------- --------- ------------ Total nonperforming assets $ 6,565 $ 983 $ 7,548 ========= ========= ============ YTD net charge-offs $ 423 $ 875 $ 1,298 ========= ========= ============ As of and for the three months ended September 30, 2006 Bank Other Total - ---------------------------------- --------- --------- ------------ Loans past due 90 days and still accruing $ 51 $ 14 $ 65 Nonaccrual loans 4,304 519 4,823 Other real estate owned and repossessed assets 2,207 227 2,434 --------- --------- ------------ Total nonperforming assets $ 6,562 $ 760 $ 7,322 ========= ========= ============ YTD net charge-offs $ 1,448 $ 644 $ 2,092 ========= ========= ============ As of and for the year ended December 31, 2006 Bank Other Total - ---------------------------------- --------- --------- ------------ 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 September 30, 2007 Bank Other Consolidated - ---------------------------------- --------- --------- ------------ Nonperforming loans as a percentage of total loans, net of unearned income 0.24% 1.40% 0.26% Nonperforming assets as a percentage of total assets 0.22% 1.96% 0.26% Allowance for loan losses as a percentage of total loans, net of unearned income 1.32% 8.01% 1.45% Allowance for loan losses as a percentage of nonperforming loans 556.73% 573.30% 558.18% YTD net charge-offs to average total loans, net of unearned income 0.02% 2.45% 0.07% As of and for the three months ended September 30, 2006 Bank Other Consolidated - ---------------------------------- --------- --------- ------------ Nonperforming loans as a percentage of total loans, net of unearned income 0.29% 1.63% 0.33% Nonperforming assets as a percentage of total assets 0.38% 2.02% 0.42% Allowance for loan losses as a percentage of total loans, net of unearned income 1.28% 7.92% 1.45% Allowance for loan losses as a percentage of nonperforming loans 436.81% 486.49% 442.23% YTD net charge-offs to average total loans, net of unearned income 0.10% 2.04% 0.15% As of and for the year ended December 31, 2006 Bank Other Consolidated - ---------------------------------- --------- --------- ------------ 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 September 30, 2007 Three Months Ended September 30, ----------------------------------------------------- 2007 2006 -------------------------- -------------------------- Average Average Average Average Balance Interest Rate Balance Interest Rate --------- -------- ------- --------- -------- ------- Interest-earning assets: - ---------------- Loans (1) 2,327,498 48,631 8.29% 1,464,356 29,600 8.02% Investment securities 255,556 3,641 5.65% 57,226 752 5.21% Other short- term investments 1,760 22 4.96% 1,168 15 5.10% Fully taxable equivalent adjustment (2) 205 38 --------- -------- ------- --------- -------- ------- Total interest- earning assets 2,584,814 52,499 8.06% 1,522,750 30,405 7.92% --------- -------- ------- --------- -------- ------- Non-interest earning assets 321,831 148,418 --------- --------- Total assets 2,906,645 1,671,168 ========= ========= Interest-bearing liabilities: - ---------------- Deposits: - ---------------- Now accounts, money market and savings 701,472 4,381 2.48% 467,112 2,447 2.08% Time deposits 1,120,908 13,431 4.75% 630,258 6,381 4.02% --------- -------- ------- --------- -------- ------- Total interest bearing- deposits 1,822,380 17,812 3.88% 1,097,370 8,828 3.19% --------- -------- ------- --------- -------- ------- Securities sold under repurchase and short-term borrowings 147,589 1,777 4.78% 42,775 531 4.93% Notes payable 375,618 5,412 5.72% 178,786 2,478 5.50% --------- -------- ------- --------- -------- ------- Total interest- bearing liabilities 2,345,587 25,001 4.23% 1,318,931 11,837 3.56% --------- -------- ------- --------- -------- ------- Non-Interest Bearing Liabilities: - ---------------- Demand Deposits 208,093 152,035 Other Liabilities 33,893 19,868 --------- --------- Total Non- Interest Bearing Liabilities 241,986 171,903 --------- --------- Total liabilities 2,587,573 1,490,834 --------- --------- Shareholders' equity 319,072 180,334 Total liabilities & shareholders' equity 2,906,645 1,671,168 ========= ========= Net interest income 27,498 18,568 ======== ======== Interest rate spread 3.83% 4.36% ======= ======= Net yield on interest- earning assets (net interest margin) 4.22% 4.84% ======= ======= Nine Months Ended September 30, ----------------------------------------------------- 2007 2006 -------------------------- -------------------------- Average Average Average Average Balance Interest Rate Balance Interest Rate --------- -------- ------- --------- -------- ------- Interest-earning assets: - ---------------- Loans (1) 1,956,853 120,226 8.21% 1,428,177 83,481 7.82% Investment securities 154,630 6,440 5.57% 56,084 2,032 4.84% Other short- term investments 1,279 49 5.12% 2,998 110 4.91% Fully taxable equivalent adjustment (2) 351 115 --------- -------- ------- --------- -------- ------- Total interest- earning assets 2,112,762 127,066 8.04% 1,487,259 85,738 7.71% --------- -------- ------- --------- -------- ------- Non-interest earning assets 235,905 147,364 --------- --------- Total assets 2,348,667 1,634,623 ========= ========= Interest-bearing liabilities: - ---------------- Deposits: - ---------------- Now accounts, money market and savings 645,708 12,792 2.65% 497,576 7,703 2.07% Time deposits 891,179 31,185 4.68% 627,269 17,814 3.80% --------- -------- ------- --------- -------- ------- Total interest bearing- deposits 1,536,887 43,977 3.83% 1,124,845 25,517 3.03% --------- -------- ------- --------- -------- ------- Securities sold under repurchase and short-term borrowings 80,697 2,831 4.69% 33,156 1,135 4.58% Notes payable 268,917 10,860 5.40% 134,820 5,482 5.44% --------- -------- ------- --------- -------- ------- Total interest- bearing liabilities 1,886,501 57,668 4.09% 1,292,821 32,134 3.32% --------- -------- ------- --------- -------- ------- Non-Interest Bearing Liabilities: - ---------------- Demand Deposits 178,051 147,049 Other Liabilities 30,522 18,535 --------- --------- Total Non- Interest Bearing Liabilities 208,573 165,584 --------- --------- Total liabilities 2,095,074 1,458,405 --------- --------- Shareholders' equity 253,593 176,218 Total liabilities & shareholders' equity 2,348,667 1,634,623 ========= ========= Net interest income 69,398 53,604 ======== ======== Interest rate spread 3.95% 4.38% ======= ======= Net yield on interest- earning assets (net interest margin) 4.39% 4.82% ======= ======= (1) Average loan balances included nonaccrual loans. Interest income collected on nonaccrual loans has been included. (2) Fully Taxable Equivalent ("FTE") at the rate of 35%. The FTE basis adjusts for the tax benefits of income on certain tax-exempt loans and investments using the federal statutory rate of 35% for each period presented. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GREEN BANKSHARES, INC. Consolidated Financial Highlights September 30, 2007 (UNAUDITED) - ---------------------------------------------------------------------- September 30, December 31, 2007 2006 ----------------- ----------------- Loans Balance % Balance % % Change - ---------------------- --------- ------- --------- ------- -------- Commercial $ 318,726 13.62% $ 258,998 16.70% 23.06% Commercial real estate 1,521,440 64.98% 921,190 59.38% 65.16% Residential real estate 400,719 17.12% 281,629 18.16% 42.29% Consumer 98,214 4.20% 87,111 5.62% 12.75% Other 1,761 0.08% 2,203 0.14% -20.06% --------- ------- --------- ------- -------- 2,340,860 100.00% 1,551,131 100.00% 50.91% ======= ======= ======== Less: Unearned interest income (13,870) (11,502) --------- --------- Total $2,326,990 $1,539,629 ========= ========= Loan Balances by Geographical Region and Operating Subsidiaries - ---------------------------------------------------------------------- September 30, December 31, 2007 2006 ----------------- ----------------- % to % to Loan Total Loan Total Balance Loans Balance Loans % Change Northeastern Tennessee Region (1) $ 499,292 21.46% $ 465,567 30.24% 7.24% East Tennessee Region 751,553 32.30% 625,632 40.64% 20.13% Middle Tennessee Region 1,038,350 44.62% 414,379 26.91% 150.58% GCB Acceptance Corporation 15,647 0.67% 13,444 0.87% 16.39% Superior Financial Services, Inc. 22,148 0.95% 20,607 1.34% 7.48% --------- ------- --------- ------- -------- Totals $2,326,990 100.00% $1,539,629 100.00% 51.14% ========= ======= ========= ======= ======== (1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- September 30, December 31, 2007 2006 ----------------- ----------------- Deposits Balance % Balance % % Change - ---------------------- --------- ------- --------- ------- -------- Non-interest bearing demand $ 211,675 10.56% $ 152,634 11.45% 38.68% Interest bearing demand 441,956 25.25% 304,828 22.88% 44.99% Money market and savings 215,598 11.99% 194,068 14.56% 11.09% Retail time 578,088 26.51% 445,816 33.46% 29.67% Jumbo time 579,348 25.69% 235,159 17.65% 146.36% --------- ------- --------- ------- -------- Total $2,026,665 100.00% $1,332,505 100.00% 52.09% ========= ======= ========= ======= ======== Deposit Balances by Geographical Region and Operating Subsidiaries - ---------------------------------------------------------------------- September 30, December 31, 2007 2006 ----------------- ----------------- Balance % Balance % % Change --------- ------- --------- ------- -------- Northeastern Tennessee Region (1) $ 777,674 38.37% $ 613,257 46.02% 26.81% East Tennessee Region 265,450 13.10% 281,094 21.10% -5.57% Middle Tennessee Region 983,541 48.53% 438,154 32.88% 124.47% GCB Acceptance Corporation - 0.00% - 0.00% - Superior Financial Services, Inc. - 0.00% - 0.00% - --------- ------- --------- ------- -------- $2,026,665 100.00% $1,332,505 100.00% 52.09% ========= ======= ========= ======= ======== (1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina - ---------------------------------------------------------------------- CONTACT: Green Bankshares, Inc. James E. Adams, 423-278-3050 Executive Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----