Attached files
| file | filename |
|---|---|
| 8-K - GREEN BANKSHARES, INC. 8-K - GREEN BANKSHARES, INC. | a50230395.htm |
Exhibit 99.1
Green Bankshares Announces Financial Results for the Fourth Quarter and Full Year 2011
GREENEVILLE, Tenn.--(BUSINESS WIRE)--April 9, 2012--Green Bankshares, Inc. (NASDAQ:GRNB), a majority-owned subsidiary of Capital Bank Financial Corp. ("CBF", formerly known as North American Financial Holdings, Inc.), today reported unaudited financial results for the fourth quarter of 2011. Operating and financial highlights include the following:
- The Company reported a net loss available to common shareholders of $33.7 million, or $2.57 per diluted share, for the period prior to the CBF investment from January 1, 2011 through September 7, 2011;
- The Company reported net income of $1.7 million and $2.6 million, or $0.01 and $0.02 per diluted share, for the periods subsequent to the CBF investment in the fourth quarter of 2011, and the period from September 8, 2011 through December 31, 2011, respectively; and
- The Company held a 34% ownership in Capital Bank, National Association ("Capital Bank, NA") as of December 31, 2011.
CBF is a bank holding company formed with the goal of creating a regional banking franchise in the southeastern region of the United States through organic growth and acquisition of other banks, including failed, underperforming and undercapitalized banks. CBF is the controlling owner of Capital Bank, NA, a $6.5 billion bank with 143 branches in Florida, North Carolina, South Carolina, Tennessee and Virginia.
"Thanks to the hard work of team mates across the Company, I am very proud to be able to say that today, Capital Bank, NA is a single bank, with 143 branches operating under one brand, offering a common set of products and processing on one IT system. That is a huge accomplishment for us in such a short period of time," stated Gene Taylor, Chairman and Chief Executive Officer of CBF and Green Bankshares, Inc.
"We are pleased with continued success in generating new loans and core deposits. These activities are helping customers achieve their goals and will lead to higher profitability for the Company," commented Chris Marshall, Chief Financial Officer of CBF and Green Bankshares, Inc.
Bank Mergers
On September 7, 2011, GreenBank, which was formerly a wholly owned subsidiary of the Company, merged (the "Bank Merger") with and into Capital Bank, NA, a national banking association and subsidiary of TIB Financial Corp. ("TIB Financial"), a corporation organized under the laws of the State of Florida, Capital Bank Corporation, a corporation organized under the laws of the state of North Carolina ("Capital Bank Corp.") and CBF, with Capital Bank, NA as the surviving entity. CBF is the owner of approximately 90% of the Company's common stock, approximately 83% of Capital Bank Corp.'s common stock and approximately 94% of TIB Financial's common stock.
As of December 31, 2011, Capital Bank, NA had total assets of $6.5 billion, total deposits of $5.1 billion and shareholders' equity of $939.8 million. As of December 31, 2011, following the Bank Merger, Capital Bank, NA operated 143 branches in Tennessee, Florida, North Carolina, South Carolina, and Virginia.
Through the subsidiary bank mergers the common stock of the subsidiary banks was converted into shares of Capital Bank, NA common stock based on each entity’s relative tangible book value. As a result of the mergers of TIB Bank, Capital Bank and Green Bank into Capital Bank, N.A., the Company now owns approximately 34% of Capital Bank, NA, with CBF directly owning 19%, Capital Bank Corp. directly owning 26% and TIB Financial owning the remaining 21%.
Due to its ownership level and significant influence, the Company's investment in Capital Bank, NA is recorded as an equity-method investment in that entity. As of December 31, 2011, the Company's investment in Capital Bank, NA totaled $315.3 million, which reflected the Company's pro rata ownership of Capital Bank, NA's total shareholders' equity as a result of the Bank Merger. In periods subsequent to the Bank Merger, the Company will adjust this equity investment balance based on its equity in Capital Bank, NA's net income and comprehensive income. In connection with the Bank Merger, assets and liabilities of GreenBank were deconsolidated from the Company's balance sheet, resulting in a significant decrease in total assets and total liabilities of the Company in the third quarter of 2011.
Potential Merger of the Company and CBF
On September 8, 2011, the Boards of Directors of CBF and the Company approved and adopted a merger agreement. The merger agreement provides for the merger, following the receipt of shareholder approval by the Company’s shareholders (including CBF), of the Company with and into CBF, with CBF continuing as the surviving entity. In the merger, each share of the Company’s common stock issued and outstanding immediately prior to the completion of the merger, except for shares for which appraisal rights are properly exercised and certain shares held by CBF or the Company, will be converted into the right to receive 0.0915 of a share of CBF Class A common stock. No fractional shares of Class A common stock will be issued in connection with the merger, and holders of the Company’s common stock will be entitled to receive cash in lieu thereof.
Since CBF is the majority shareholder of the Company, CBF will be able to determine the outcome of the shareholder vote needed to approve the merger.
Financial Discussion
Financial results for 2011 were significantly impacted by the controlling investment in the Company by CBF. The Company applied push-down accounting. Accordingly, the Company's assets and liabilities were adjusted to estimated fair values at the September 7, 2011 CBF investment date, resulting in elimination of the allowance for loan losses. The Company is still in the process of completing its fair value analysis of assets and liabilities, and final fair value adjustments may differ from the preliminary estimates recorded to date. Financial results prior to the CBF Investment have been labeled with "Predecessor Company" while results subsequent to the CBF Investment have been labeled with "Successor Company."
The Successor Company reported net income of $1.7 million for the fourth quarter of 2011, while the Predecessor Company reported a net loss available to common shareholders of $52.8 million for the fourth quarter of 2010. Regarding full year results, the Successor Company reported net income of $2.6 million for the period from September 8, 2011 through December 31, 2011, while the Predecessor Company reported a net loss available to common shareholders of $33.7 million for the period prior to the CBF investment from January 1, 2011 through September 7, 2011, and a net loss available to common shareholders of $85.7 million for the full year 2010.
Due to the difference in lengths of reporting periods and the Merger discussed above and the resulting deconsolidation of GreenBank on September 7, 2011, the operating results for the period from January 1, 2011 through September 7, 2011, only include the results of GreenBank for approximately eight months and therefore are generally not comparable to the operations in prior years.
The loss reported in the period from January 1, 2011 through September 7, 2011, was primarily due to a $43.7 million provision for loan losses and $24.8 million in foreclosed asset related expenses. The loss reported for the full year of 2010 was primarily due to a $71.1 million provision for loan losses and $35.4 million in foreclosed asset related expenses.
Predecessor Company net interest margin for the period from January 1, 2011 through September 7, 2011, was 3.86%, unchanged versus the full year of 2010. Subsequent to the deconsolidation of GreenBank on September 7, 2011, the net interest margin is not meaningful as the Company has no interest earning asset. As the Company accounts for its investment in Capital Bank, NA using the equity method, the Company's proportional share of the net after tax earnings of Capital Bank, NA is recorded as Equity in income of Capital Bank, NA, which for the period from September 8, 2011 through December 31, 2011, was $3.4 million.
The following table presents summarized financial information for Capital Bank, NA:
|
Three Months Ended |
|||
| Interest income |
$ |
74,163 |
|
| Interest expense | 9,266 | ||
| Net interest income | 64,897 | ||
| Provision for loan losses | 16,790 | ||
| Non-interest income | 16,105 | ||
| Non-interest expense | 53,271 | ||
| Net income | $ | 6,797 | |
About Green Bankshares
Headquartered in Greeneville, Tennessee, Green Bankshares, Inc. is a financial services company with a 34% equity method investment in Capital Bank, NA, a national banking association with approximately $6.5 billion in total assets and 143 branches serving communities in Tennessee, Florida, North Carolina, South Carolina, and Virginia.
| GREEN BANKSHARES, INC. | ||||||||||||||||||||||||||||
| Unaudited Financial Highlights | ||||||||||||||||||||||||||||
| (In thousands except per share data) | ||||||||||||||||||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor |
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|
Three |
Sept. 8 - |
July 1 – |
Three |
Sept. 8 - |
Jan. 1 - |
Year |
||||||||||||||||||||||
| Operating Data: | ||||||||||||||||||||||||||||
| Interest income | $ | – | $ | – | $ | 18,480 | $ | 28,213 | $ | – | $ | 71,180 | $ | 120,864 | ||||||||||||||
| Interest expense | 741 | 236 | 4,422 | 8,499 | 977 | 18,404 | 37,271 | |||||||||||||||||||||
| Net interest income (loss) | (741 | ) | (236 | ) | 14,058 | 19,714 | (977 | ) | 52,776 | 83,593 | ||||||||||||||||||
| Provision for loan losses | – | – | 15,513 | 25,646 | – | 43,742 | 71,107 | |||||||||||||||||||||
| Noninterest income | 2,297 | 1,169 | 11,940 | 7,058 | 3,465 | 27,803 | 32,544 | |||||||||||||||||||||
| Noninterest expense | 188 | 95 | 29,585 | 41,986 | 282 | 77,382 | 110,815 | |||||||||||||||||||||
| Income tax provision (benefit) | (318 | ) | (123 | ) | 974 | 10,688 | (441 | ) | 974 | 14,910 | ||||||||||||||||||
| Net income (loss) | 1,686 | 961 | (20,074 | ) | (51,548 | ) | 2,647 | (41,519 | ) | (80,695 | ) | |||||||||||||||||
| Preferred stock dividends and related cost | – | – | 909 | 1,250 | – | 3,409 | 5,001 | |||||||||||||||||||||
| Gain on retirement of Series A preferred allocated to common shareholders | – | – | 11,188 | – | – | 11,188 | – | |||||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 1,686 | $ | 961 | $ | (9,795 | ) | $ | (52,798 | ) | $ | 2,647 | $ | (33,740 | ) | $ | (85,696 | ) | ||||||||||
|
Per Share of Common Stock: |
||||||||||||||||||||||||||||
| Basic earnings (loss) | $ | 0.01 | $ | 0.01 | $ | (0.75 | ) | $ | (4.03 | ) | $ | 0.02 | $ | (2.57 | ) | $ | (6.54 | ) | ||||||||||
| Diluted earnings (loss) | $ | 0.01 | $ | 0.01 | $ | (0.75 | ) | $ | (4.03 | ) | $ | 0.02 | $ | (2.57 | ) | $ | (6.54 | ) | ||||||||||
| Dividends | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||||
|
Weighted Average Shares Outstanding: |
||||||||||||||||||||||||||||
| Basic | 133,084 | 133,084 | 13,146 | 13,098 | 133,084 | 13,126 | 13,094 | |||||||||||||||||||||
| Diluted | 133,160 | 133,174 | 13,146 | 13,098 | 133,160 | 13,126 | 13,094 | |||||||||||||||||||||
| GREEN BANKSHARES, INC. | ||||||||||||
| End of Period Balances | ||||||||||||
| (Dollars in thousands except per share data) | ||||||||||||
| Successor Company |
Predecessor |
|||||||||||
|
Dec. 31, |
Sept. 30, |
Dec. 31, |
||||||||||
| Assets | $ | 321,238 | $ | 319,439 | $ | 2,406,040 | ||||||
| Investment in Capital Bank, NA | 315,343 | 313,194 | – | |||||||||
| Loans, net of unearned interest | – | – | 1,745,378 | |||||||||
| Cash and investments | 2,091 | 2,347 | 509,415 | |||||||||
| Federal funds sold | – | – | 4,856 | |||||||||
| Deposits | – | – | 1,976,854 | |||||||||
| FHLB advances and notes payable | – | – | 158,653 | |||||||||
| Subordinated debentures | 45,180 | 44,944 | 88,662 | |||||||||
| Repurchase agreements | – | – | 19,413 | |||||||||
| Shareholder's equity | 260,049 | 258,582 | 143,897 | |||||||||
| Common shareholder's equity (1) | 260,049 | 258,582 | 75,776 | |||||||||
| Tangible common shareholder's equity (2) | 216,810 | 215,901 | 69,025 | |||||||||
| Tangible shareholder's equity (3) | 216,810 | 215,901 | 137,146 | |||||||||
| Ratios: | ||||||||||||
| Common book value per share (1) | $ | 1.95 | $ | 1.94 | $ | 5.75 | ||||||
| Tangible common book value per share (2) | $ | 1.63 | $ | 1.62 | $ | 5.23 | ||||||
|
(1) |
Common shareholder equity is shareholders' equity less preferred stock. |
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|
(2) |
Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock. |
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|
(3) |
Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. |
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|
(4) |
Tangible assets is total assets less goodwill and intangible assets. |
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| GREEN BANKSHARES, INC. | ||||||||||||
| Consolidated Balance Sheets | ||||||||||||
| (Dollars in thousands except per share data) | ||||||||||||
|
(Unaudited) |
Predecessor |
|||||||||||
|
Dec. 31, |
Sept. 30, |
Dec. 31, |
||||||||||
|
ASSETS |
||||||||||||
| Cash and due from banks | $ | 2,091 | $ | 2,347 | $ | 289,358 | ||||||
| Federal funds sold | – | – | 4,856 | |||||||||
| Cash and cash equivalents | 2,091 | 2,347 | 294,214 | |||||||||
| Investment in Capital Bank, NA | 315,343 | 313,194 |
– |
|||||||||
| Securities available-for-sale ("AFS") |
– |
– | 202,002 | |||||||||
|
Securities held-to-maturity (with a December 31, 2010 market value of $467) |
– | – | 465 | |||||||||
| FHLB and other stock, at cost | – | – | 12,734 | |||||||||
| Loans held for sale | – | – | 1,299 | |||||||||
| Loans, net of unearned income | – | – | 1,745,378 | |||||||||
| Allowance for loan losses | – | – | (66,830 | ) | ||||||||
| Other real estate owned and repossessed assets | – | – | 60,095 | |||||||||
| Bank premises and equipment, net | – | – | 78,794 | |||||||||
| Cash surrender value of life insurance | – | – | 31,479 | |||||||||
| Core deposit and other intangibles | – | – | 6,751 | |||||||||
| Deferred Tax Asset ( December 31, 2010 net of valuation allowance of $43,455) | – | – | 2,177 | |||||||||
| Other assets | 3,804 | 3,898 | 37,482 | |||||||||
| Total assets | $ | 321,238 | $ | 319,439 | $ | 2,406,040 | ||||||
|
|
||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
| Non-interest-bearing deposits | $ | – | $ | – | $ | 152,752 | ||||||
| Interest-bearing deposits | – | – | 1,822,703 | |||||||||
| Brokered deposits | – | – | 1,399 | |||||||||
| Total deposits | – | – | 1,976,854 | |||||||||
| Federal funds purchased | – | – | – | |||||||||
| Repurchase agreements | – | – | 19,413 | |||||||||
| FHLB advances and notes payable | – | – | 158,653 | |||||||||
| Subordinated debentures | 45,180 | 44,944 | 88,662 | |||||||||
| Deferred Tax Liability | 15,522 | 15,563 | – | |||||||||
| Accrued interest payable and other liabilities | 487 | 350 | 18,561 | |||||||||
| Total liabilities | 61,189 | 60,857 | 2,262,143 | |||||||||
|
SHAREHOLDERS' EQUITY |
||||||||||||
|
Preferred stock: no par value, 1,000,000 shares authorized; 0, 0 and 72,278 shares outstanding |
– | – | 68,121 | |||||||||
| Common stock: $0.01, $0.01 and $2 par value, 300,000,000, 300,000,000 and 20,000,000 shares authorized; 133,160,384, 133,174,370 and 13,188,896 shares outstanding | 1,332 | 1,332 | 26,378 | |||||||||
| Common stock warrants | – | – | 6,934 | |||||||||
| Additional paid in capital | 257,531 | 257,558 | 188,901 | |||||||||
| Retained earnings (deficit) | 2,647 | 961 | (147,436 | ) | ||||||||
| Accumulated other comprehensive income | (1,461 | ) | (1,269 | ) | 999 | |||||||
| Total shareholders' equity | 260,049 | 258,582 | 143,897 | |||||||||
| Total liabilities & shareholders' equity | $ | 321,238 | $ | 319,439 | $ | 2,406,040 | ||||||
| GREEN BANKSHARES, INC. | |||||||||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||||||||
| (In thousands except per share data) | |||||||||||||||||||||||||||||
| Successor Company |
Predecessor Company |
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|
Three |
Sept. 8 - |
July 1 - |
|
Three |
Jan. 1 - |
Year Ended |
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|
Dec. 31, |
Dec. 31, |
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|
Interest income: |
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| Interest and fees on loans | $ | – | $ | – | $ | 16,854 | $ | 26,543 | $ | 65,258 | $ | 113,721 | $ | 129,212 | |||||||||||||||
| Taxable securities | – | – | 1,202 | 1,078 | 4,290 | 4,938 | 7,035 | ||||||||||||||||||||||
| Nontaxable securities | – | – | 204 | 319 | 790 | 1,241 | 1,260 | ||||||||||||||||||||||
| FHLB and other stock | – | – | 102 | 122 | 374 | 530 | 573 | ||||||||||||||||||||||
| Federal funds sold and other | – | – | 118 | 151 | 468 | 434 | 376 | ||||||||||||||||||||||
| Total interest income | – | – | 18,480 | 28,213 | 71,180 | 120,864 | 138,456 | ||||||||||||||||||||||
|
|
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|
Interest expense: |
|||||||||||||||||||||||||||||
| Deposits | – | – | 2,873 | 6,303 | 12,764 | 28,434 | 45,768 | ||||||||||||||||||||||
| Federal funds purchased and repurchase agreements | – | – | 3 | 5 | 11 | 22 | 29 | ||||||||||||||||||||||
| FHLB advances and notes payable | – | – | 1,200 | 1,703 | 4,314 | 6,835 | 9,557 | ||||||||||||||||||||||
| Subordinated debentures | 741 | 236 | 346 | 488 | 1,315 | 1,980 | 2,577 | ||||||||||||||||||||||
| Total interest expense | 741 | 236 | 4,422 | 8,499 | 18,404 | 37,271 | 57,931 | ||||||||||||||||||||||
| Net interest income | (741 | ) | (236 | ) | 14,058 | 19,714 | 52,776 | 83,593 | 80,525 | ||||||||||||||||||||
| Provision for loan losses | – | – | 15,513 | 25,646 | 43,742 | 71,107 | 50,246 | ||||||||||||||||||||||
|
|
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|
Non-interest income: |
|||||||||||||||||||||||||||||
| Service charges on deposit accounts | – | – | 4,137 | 4,896 | 16,346 | 24,179 | 23,738 | ||||||||||||||||||||||
| Other charges and fees | – | – | 348 | 635 | 1,147 | 1,791 | 1,999 | ||||||||||||||||||||||
| Trust and investment services income | – | – | 446 | 482 | 1,457 | 2,842 | 1,977 | ||||||||||||||||||||||
| Mortgage banking income | – | – | 72 | 250 | 271 | 703 | 383 | ||||||||||||||||||||||
|
Equity Method Income in Capital Bank NA |
2,281 | 1,165 | – | - | – | – | – | ||||||||||||||||||||||
| Other income | 16 | 4 | 613 | 795 | 2,258 | 3,122 | 3,042 | ||||||||||||||||||||||
| Securities gains (losses), net | |||||||||||||||||||||||||||||
| Realized gains (losses), net | – | – | 6,324 | – | 6,324 | – | 1,415 | ||||||||||||||||||||||
| Other-than-temporary impairment | – | – | – | – | – | (553 | ) | (1,678 | ) | ||||||||||||||||||||
|
Less non-credit portion recognized in other comprehensive income |
– | – | – | – | – | 460 | 702 | ||||||||||||||||||||||
| Total non-interest income | 2,297 | 1,169 | 11,940 | 7,058 | 27,803 | 32,544 | 31,578 | ||||||||||||||||||||||
|
Non-interest expense: |
|||||||||||||||||||||||||||||
| Employee compensation | – | – | 6,105 | 8,087 | 21,560 | 31,990 | 30,611 | ||||||||||||||||||||||
| Employee benefits | – | – | 602 | 769 | 2,458 | 3,378 | 3,835 | ||||||||||||||||||||||
| Occupancy expense | – | – | 1,803 | 1,733 | 5,308 | 6,908 | 6,956 | ||||||||||||||||||||||
| Equipment expense | – | – | 661 | 728 | 2,176 | 2,846 | 3,092 | ||||||||||||||||||||||
| Computer hardware/software expense | – | – | 653 | 897 | 2,508 | 3,523 | 2,816 | ||||||||||||||||||||||
| Professional services | 102 | 61 | 1,189 | 853 | 3,099 | 2,777 | 2,108 | ||||||||||||||||||||||
| Advertising | – | – | 448 | 327 | 1,533 | 2,388 | 1,894 | ||||||||||||||||||||||
| OREO maintenance expense | – | – | 627 | 613 | 2,976 | 2,324 | 1,222 | ||||||||||||||||||||||
| Collection and repossession expense | – | – | 408 | 899 | 1,727 | 3,228 | 3,131 | ||||||||||||||||||||||
| Loss on OREO and repossessed assets | – | – | 13,672 | 21,922 | 20,101 | 29,895 | 8,156 | ||||||||||||||||||||||
| FDIC insurance | – | – | 260 | 996 | 2,629 | 4,155 | 4,960 | ||||||||||||||||||||||
| Core deposit and other intangible amortization | – | – | 467 | 647 | 1,716 | 2,584 | 2,750 | ||||||||||||||||||||||
| Goodwill impairment | – | – | – | – | – | – | 143,389 | ||||||||||||||||||||||
| Other expenses | 86 | 34 | 2,690 | 3,515 | 9,591 | 14,819 | 14,667 | ||||||||||||||||||||||
| Total non-interest expense | 188 | 95 | 29,585 | 41,986 | 77,382 | 110,815 | 229,587 | ||||||||||||||||||||||
| Income (loss) before income taxes | 1,368 | 838 | (19,100 | ) | (40,860 | ) | (40,545 | ) | (65,785 | ) | (167,730 | ) | |||||||||||||||||
| Income taxes provision (benefit) | (318 | ) | (123 | ) | 974 | 10,688 | 974 | 14,910 | (17,036 | ) | |||||||||||||||||||
| Net income (loss) | 1,686 | 961 | (20,074 | ) | (51,548 | ) | (41,519 | ) | (80,695 | ) | (150,694 | ) | |||||||||||||||||
| Preferred stock dividends and accretion of discount on warrants | – | – | 909 | 1,250 | 3,409 | 5,001 | 4,982 | ||||||||||||||||||||||
| Gain on retirement of Series A preferred allocated to common shareholders | – | – | 11,188 |
|
– |
11,188 |
– |
– |
|||||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 1,686 | $ | 961 | $ | (9,795 | ) | $ | (52,798 | ) | $ | (33,740 | ) | $ | (85,696 | ) | $ | (155,676 | ) | ||||||||||
| Per share of common stock: | |||||||||||||||||||||||||||||
| Basic earnings (loss) | $ | 0.01 | $ | 0.01 | $ | (0.75 | ) | $ | (4.03 | ) | $ | (2.57 | ) | $ | (6.54 | ) | $ | (11.91 | ) | ||||||||||
| Diluted earnings (loss) | $ | 0.01 | $ | 0.01 | $ | (0.75 | ) | $ | (4.03 | ) | $ | (2.57 | ) | $ | (6.54 | ) | $ | (11.91 | ) | ||||||||||
| Dividends | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 133,084 | 133,084 | 13,146 | 13,098 | 13,126 | 13,094 | 13,068 | ||||||||||||||||||||||
| Diluted (1) | 133,160 | 133,174 | 13,146 | 13,098 | 13,126 | 13,094 | 13,068 | ||||||||||||||||||||||
|
(1) |
Diluted weighted average shares outstanding for the period from July 1, 2011 to September 7, 2011, January 1, 2011 to September 7, 2011, and three and twelve months ended December 31, 2010, excludes 119,150, 94,930, 92,674 and 92,979 shares, respectively, because they are anti-dilutive. |
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| GREEN BANKSHARES, INC. | |||||||||||||||||||
| Consolidated Average Balances, Interest Rates and Yields | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||
|
Period of |
Three Months Ended |
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|
Average |
Interest |
Average |
Average |
Interest |
Average |
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|
Interest-earning assets: |
|||||||||||||||||||
| Loans(1)(2) | $ | 1,404,673 | $ | 16,863 | 6.35 | % | $ | 1,676,376 | $ | 26,558 | 6.29 | % | |||||||
| Investment securities(2) | 253,733 | 1,618 | 3.37 | % | 180,047 | 1,690 | 3.72 | % | |||||||||||
| Other short-term investments | 260,137 | 118 | 0.24 | % | 237,976 | 152 | 0.25 | % | |||||||||||
| Total interest-earning assets | 1,918,543 | 18,599 | 5.13 | % | 2,094,399 | 28,400 | 5.38 | % | |||||||||||
| Non-interest earning assets | 319,598 | 357,387 | |||||||||||||||||
| Total assets | $ | 2,238,141 | $ | 2,451,786 | |||||||||||||||
|
Interest-bearing liabilities: |
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Deposits: |
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| Interest checking, money market and savings | $ | 1,044,383 | $ | 822 | 0.42 | % | $ | 1,018,134 | $ | 2,517 | 0.98 | % | |||||||
| Time deposits | 615,145 | 2,050 | 1.76 | % | 778,060 | 3,786 | 1.93 | % | |||||||||||
| Total interest bearing-deposits | 1,659,528 | 2,872 | 0.92 | % | 1,796,194 | 6,303 | 1.39 | % | |||||||||||
| Securities sold under repurchase and short-term borrowings | 15,456 | 3 | 0.10 | % | 20,848 | 5 | 0.10 | % | |||||||||||
| Notes payable | 157,826 | 1,201 | 4.03 | % | 169,910 | 1,703 | 3.98 | % | |||||||||||
| Subordinated debentures | 88,662 | 346 | 2.06 | % | 88,662 | 488 | 2.18 | % | |||||||||||
| Total interest-bearing liabilities | 1,921,472 | 4,422 | 1.22 | % | 2,075,614 | 8,499 | 1.62 | % | |||||||||||
|
Non-interest bearing liabilities: |
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| Demand Deposits | 173,999 | 167,201 | |||||||||||||||||
| Other Liabilities | 22,652 | 16,060 | |||||||||||||||||
| Total non-interest bearing liabilities | 196,651 | 183,261 | |||||||||||||||||
| Total liabilities | 2,118,123 | 2,258,875 | |||||||||||||||||
| Shareholders' equity | 120,018 | 192,911 | |||||||||||||||||
|
Total liabilities & shareholders' equity |
$ | 2,238,141 | $ | 2,451,786 | |||||||||||||||
| Net interest income | 14,177 | 19,901 | |||||||||||||||||
| Interest rate spread | 3.91 | % | 3.76 | % | |||||||||||||||
|
Net yield on interest-earning assets (net interest margin) |
3.91 | % | 3.77 | % | |||||||||||||||
|
(1) |
Average loan balances exclude nonaccrual loans for the periods presented. |
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|
(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. |
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| GREEN BANKSHARES, INC. | |||||||||||||||||||
| Consolidated Average Balances, Interest Rates and Yields | |||||||||||||||||||
| Predecessor Company | |||||||||||||||||||
|
Period of |
Twelve Months Ended |
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|
Average |
Interest |
Average |
Average |
Interest |
Average |
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|
Interest-earning assets: |
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| Loans(1)(2) | $ | 1,491,844 | $ | 65,293 | 6.39 | % | $ | 1,833,865 | $ | 113,788 | 6.20 | % | |||||||
| Investment securities(2) | 243,473 | 5,879 | 3.53 | % | 180,681 | 7,376 | 4.08 | % | |||||||||||
| Other short-term investments | 278,355 | 468 | 0.25 | % | 170,952 | 435 | 0.25 | % | |||||||||||
| Total interest-earning assets | 2,013,672 | 71,640 | 5.19 | % | 2,185,498 | 121,599 | 5.56 | % | |||||||||||
| Non-interest earning assets | 331,633 | 325,948 | |||||||||||||||||
| Total assets | $ | 2,345,305 | $ | 2,511,446 | |||||||||||||||
|
Interest-bearing liabilities: |
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|
Deposits: |
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| Interest checking, money market and savings | $ | 1,066,783 | $ | 4,062 | 0.56 | % | $ | 980,878 | $ | 9,924 | 1.01 | % | |||||||
| Time deposits | 696,335 | 8,702 | 1.82 | % | 841,458 | 18,510 | 2.20 | % | |||||||||||
| Total interest bearing-deposits | 1,763,118 | 12,764 | 1.06 | % | 1,822,336 | 28,434 | 1.56 | % | |||||||||||
|
Securities sold under repurchase and short-term borrowings |
16,466 | 11 | 0.10 | % | 22,338 | 22 | 0.10 | % | |||||||||||
| Notes payable | 158,351 | 4,314 | 3.98 | % | 171,229 | 6,835 | 3.99 | % | |||||||||||
| Subordinated debentures | 88,662 | 1,315 | 2.17 | % | 88,662 | 1,980 | 2.23 | % | |||||||||||
| Total interest-bearing liabilities | 2,026,597 | 18,404 | 1.33 | % | 2,104,565 | 37,271 | 1.77 | % | |||||||||||
|
Non-interest bearing liabilities: |
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| Demand Deposits | 166,768 | 166,814 | |||||||||||||||||
| Other Liabilities | 19,575 | 17,854 | |||||||||||||||||
| Total non-interest bearing liabilities | 186,343 | 184,668 | |||||||||||||||||
| Total liabilities | 2,212,940 | 2,289,233 | |||||||||||||||||
| Shareholders' equity | 132,365 | 222,213 | |||||||||||||||||
|
Total liabilities & shareholders' equity |
$ | 2,345,305 | $ | 2,511,446 | |||||||||||||||
| Net interest income | 53,236 | 84,328 | |||||||||||||||||
| Interest rate spread | 3.87 | % | 3.79 | % | |||||||||||||||
| Net yield on interest-earning assets (net interest margin) | 3.86 | % | 3.86 | % | |||||||||||||||
|
(1) |
Average loan balances exclude nonaccrual loans for the periods presented. |
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|
(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. |
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CONTACT:
Green Bankshares, Inc.
Christopher G. Marshall,
704-554-5901
Chief Financial Officer
cmarshall@nafhinc.com