x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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Tennessee
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62-1222567
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(State
or other jurisdiction of
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(I.R.S.
Employer Identification No.)
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incorporation
or organization)
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||
100
North Main Street, Greeneville, Tennessee
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37743-4992
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(Address
of principal executive offices)
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(Zip
Code)
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ITEM
2.
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MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
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●
|
the
Company's potential growth, including its entrance or expansion into
new
markets, and the need for sufficient capital to support that
growth;
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●
|
changes
in the quality or composition of the Company's loan or investment
portfolios, including adverse developments in borrower industries
or in
the repayment ability of individual borrowers or
issuers;
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●
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an
insufficient allowance for loan losses as a result of inaccurate
assumptions;
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●
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changes
in interest rates, yield curves and interest rate spread
relationships;
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●
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the
strength of the economies in the Company's target market areas,
as well as
general economic, market or business conditions;
|
● | changes in demand for loan products and financial services; |
● | increased competition or market concentration; |
● | concentration of credit exposure; |
● | new state or federal legislation, regulations, or the initiation or outcome of litigation; and |
● | other circumstances, many of which may be beyond the Company's control. |
Three
Months Ended
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|||||||||||||||||||
June
30,
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|||||||||||||||||||
2005
|
2004
|
||||||||||||||||||
Average
|
|
Average
|
Average
|
|
Average
|
||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Loans
|
$
|
1,140,537
|
$
|
19,851
|
6.98
|
%
|
$
|
984,417
|
$
|
15,522
|
6.34
|
%
|
|||||||
Investment
securities
|
60,691
|
592
|
3.91
|
%
|
39,203
|
339
|
3.48
|
%
|
|||||||||||
Other
short-term investments
|
33,265
|
260
|
3.13
|
%
|
3,560
|
8
|
0.90
|
%
|
|||||||||||
Total
interest-earning assets
|
1,234,493
|
$
|
20,703
|
6.73
|
%
|
1,027,180
|
$
|
15,869
|
6.21
|
%
|
|||||||||
Noninterest
earning assets
|
104,107
|
96,182
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|||||||||||||||||
Total
assets
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$
|
1,338,600
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$
|
1,123,362
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|||||||||||||||
Interest-bearing
liabilities:
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|||||||||||||||||||
Deposits:
|
|||||||||||||||||||
Now
accounts, money market and savings
|
$
|
401,441
|
$
|
1,161
|
1.16
|
%
|
$
|
345,250
|
$
|
403
|
0.47
|
%
|
|||||||
Time
Deposits
|
598,470
|
4,340
|
2.91
|
%
|
465,914
|
2,603
|
2.25
|
%
|
|||||||||||
Total
interest-bearing deposits
|
$ |
999,911
|
$
|
5,501
|
2.21
|
%
|
$
|
811,164
|
$
|
3,006
|
1.49
|
%
|
|||||||
Securities
sold under repurchase agreements and
short-term borrowings
|
15,014
|
95
|
2.54
|
%
|
16,026
|
34
|
0.85
|
%
|
|||||||||||
Notes
payable
|
81,000
|
1,035
|
5.13
|
%
|
72,621
|
846
|
4.69
|
%
|
|||||||||||
Total
interest-bearing liabilities
|
$
|
1,095,925
|
$
|
6,631
|
2.43
|
%
|
$
|
899,811
|
$
|
3,886
|
1.74
|
%
|
|||||||
Noninterest
bearing liabilities:
|
|||||||||||||||||||
Demand
deposits
|
116,436
|
104,966
|
|||||||||||||||||
Other
liabilities
|
12,942
|
12,819
|
|||||||||||||||||
Total
noninterest bearing liabilities
|
|
129,378
|
117,785
|
||||||||||||||||
Total
liabilities
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1,225,303
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1,017,596
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|||||||||||||||||
Shareholders’
equity
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113,297
|
105,766
|
|||||||||||||||||
Total
liabilities and shareholders’ equity
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$
|
1,338,600
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$
|
1,123,362
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|||||||||||||||
Net
interest income
|
$
|
14,072
|
$
|
11,983
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|||||||||||||||
Interest
rate spread
|
4.30
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%
|
4.48
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%
|
|||||||||||||||
Net
yield on interest-earning assets
|
4.57
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%
|
4.69
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%
|
Six
Months Ended
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|||||||||||||||||||
June
30,
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|||||||||||||||||||
2005
|
2004
|
||||||||||||||||||
Average
|
|
Average
|
Average
|
|
Average
|
||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||
Loans
|
$
|
1,110,231
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$
|
37,930
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6.89
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%
|
$
|
976,613
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$
|
31,047
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6.39
|
%
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|||||||
Investment
securities
|
55,874
|
1,065
|
3.84
|
%
|
41,145
|
725
|
3.54
|
%
|
|||||||||||
Other
short-term investments
|
33,694
|
443
|
2.65
|
%
|
5,830
|
27
|
0.93
|
%
|
|||||||||||
Total
interest-earning assets
|
1,199,799
|
$
|
39,438
|
6.63
|
%
|
1,023,588
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$
|
31,799
|
6.25
|
%
|
|||||||||
Noninterest
earning assets
|
103,339
|
99,989
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|||||||||||||||||
Total
assets
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$
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1,303,138
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$
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1,123,577
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|||||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Deposits:
|
|||||||||||||||||||
Now
accounts, money market and savings
|
$
|
395,246
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$
|
2,027
|
1.03
|
%
|
$
|
340,165
|
$
|
805
|
0.48
|
%
|
|||||||
Time
Deposits
|
561,428
|
7,736
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2.78
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%
|
474,379
|
5,387
|
2.28
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%
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|||||||||||
Total
interest-bearing deposits
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$
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956,674
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$
|
9,763
|
2.06
|
%
|
$ |
814,544
|
$ |
6,192
|
1.53
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%
|
|||||||
Securities
sold under repurchase agreement and
short-term borrowings
|
16,712
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184
|
2.22
|
%
|
16,826
|
67
|
0.80
|
%
|
|||||||||||
Notes
payable
|
86,740
|
2,092
|
4.86
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%
|
71,852
|
1,677
|
4.69
|
%
|
|||||||||||
Total
interest-bearing liabilities
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$
|
1,060,126
|
$
|
12,039
|
2.29
|
%
|
$
|
903,222
|
$
|
7,936
|
1.77
|
%
|
|||||||
Noninterest
bearing liabilities:
|
|||||||||||||||||||
Demand
deposits
|
116,644
|
102,755
|
|||||||||||||||||
Other
liabilities
|
14,235
|
12,794
|
|||||||||||||||||
Total
noninterest bearing liabilities
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130,879
|
115,549
|
|||||||||||||||||
Total
liabilities
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1,191,005
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1,018,771
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|||||||||||||||||
Shareholders’
equity
|
112,133
|
104,806
|
|||||||||||||||||
Total
liabilities and shareholders’ equity
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$
|
1,303,138
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$
|
1,123,577
|
|||||||||||||||
Net
interest income
|
$
|
27,399
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$
|
23,863
|
|||||||||||||||
Interest
rate spread
|
4.34
|
%
|
4.48
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%
|
|||||||||||||||
Net
yield on interest-earning assets
|
4.61
|
%
|
4.69
|
%
|
Required
Minimum
Ratio
|
Required
to
be
Well
Capitalized
|
Bank
|
Company
|
||||||||||
Tier
1 risk-based capital
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4.00
|
%
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6.00
|
%
|
9.02
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%
|
8.94
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%
|
|||||
Total
risk-based capital
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8.00
|
%
|
10.00
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%
|
10.27
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%
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10.19
|
%
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|||||
Leverage
Ratio
|
4.00
|
%
|
5.00
|
%
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7.93
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%
|
7.85
|
%
|
|||||
Less
than 1
Year |
1-3
Years
|
3-5
Years
|
More
than 5
Years
|
Total
|
||||||||||||
Commitments
to make loans - fixed
|
$
|
10,904
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
10,904
|
||||||
Commitments
to make loans - variable
|
65,144
|
--
|
--
|
--
|
65,144
|
|||||||||||
Unused
lines of credit
|
191,573
|
38,078
|
4,689
|
39,085
|
273,425
|
|||||||||||
Letters
of credit
|
13,320
|
14,167
|
1,003
|
165
|
28,655
|
|||||||||||
Total
|
$
|
280,941
|
$
|
52,245
|
$
|
5,692
|
$
|
39,250
|
$
|
378,128
|
||||||
Less
than 1
Year |
1-3
Years
|
3-5
Years
|
More
than 5
Years
|
Total
|
||||||||||||
Deposits
without a stated maturity
|
$
|
520,480
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
520,480
|
||||||
Certificate
of deposits
|
438,441
|
139,343
|
49,589
|
581
|
627,954
|
|||||||||||
Repurchase
agreements
|
16,426
|
--
|
--
|
--
|
16,426
|
|||||||||||
FHLB
advances and notes payable
|
369
|
2,624
|
60,362
|
7,154
|
70,509
|
|||||||||||
Subordinated
debentures
|
--
|
--
|
--
|
13,403
|
13,403
|
|||||||||||
Operating
lease obligations
|
568
|
858
|
250
|
136
|
1,812
|
|||||||||||
Deferred
compensation
|
412
|
1,170
|
--
|
710
|
2,292
|
|||||||||||
Purchase
obligations
|
43
|
--
|
--
|
--
|
43
|
|||||||||||
Total
|
$
|
976,739
|
$
|
143,995
|
$
|
110,201
|
$
|
21,984
|
$
|
1,252,919
|
||||||
Item
6.
|
Exhibits
|
Exhibit
No. 2.1
|
Branch
Purchase and Assumption Agreement dated July 20, 2005 by and between
Greene County Bank and Old National Bank (pursuant to Item 601(b)(2)
of
Regulation S-K the schedules and exhibits to this agreement have
been
omitted from this filing)*
|
|
Exhibit
No. 31.1
|
Chief
Executive Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)**
|
|
Exhibit
No. 31.2
|
Chief
Financial Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)**
|
|
Exhibit
No. 31.3
|
Chief
Executive Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)
|
|
Exhibit
No. 31.4
|
Chief
Financial Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)
|
|
Exhibit
No. 32.1
|
Chief
Executive Officer Certification Pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002**
|
|
Exhibit
No. 32.2
|
Chief
Financial Officer Certification Pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002**
|
*
|
The
Company has withdrawn its confidential treatment request
with respect to
this agreement and has filed the agreement in its entirety
as Exhibit 2.1
to the Company’s Amendment No. 1 to Registration Statement on Form S-3
(File No. 333-127120) as filed with the Securities and Exchange
Commission
on September 9, 2005.
|
**
|
Previously
filed with the Company's Quarterly Report on Form 10-Q
for the quarter
ended June 30, 2005, as filed with the Securities Exchange
Commission
on August 1, 2005.
|
GREENE
COUNTY BANCSHARES, INC.
(Registrant)
|
||
|
|
|
Date: September 12, 2005 | By: | /s/ R. Stan Puckett |
|
||
R.
Stan Puckett
Chairman of the Board and Chief Executive
Officer
(Duly authorized
representative)
|
Date: September 12, 2005 | By: | /s/ William F. Richmond |
|
||
William
F. Richmond
Senior Vice President, Chief Financial
Officer
(Principal financial and accounting officer)
and
Assistant
Secretary
|
Exhibit
No. 2.1
|
Branch
Purchase and Assumption Agreement dated July 20, 2005 by and between
Greene County Bank and Old National Bank (pursuant to Item 601(b)(2)
of
Regulation S-K the schedules and exhibits to this agreement have
been
omitted from this filing)*
|
|
Exhibit
No. 31.1
|
Chief
Executive Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)**
|
|
Exhibit
No. 31.2
|
Chief
Financial Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)**
|
|
Exhibit
No. 31.3
|
Chief
Executive Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)
|
|
Exhibit
No. 31.4
|
Chief
Financial Officer Certification Pursuant to Rule
13a-14(a)/15d-14(a)
|
|
Exhibit
No. 32.1
|
Chief
Executive Officer Certification Pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002**
|
|
Exhibit
No. 32.2
|
Chief
Financial Officer Certification Pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002**
|
*
|
The
Company has withdrawn its confidential treatment request
with respect to
this agreement and has filed the agreement in its entirety
as Exhibit 2.1
to the Company’s Amendment No. 1 to Registration Statement on Form S-3
(File No. 333-127120) as filed with the Securities and
Exchange Commission
on September 9, 2005.
|
**
|
Previously
filed with the Company's Quarterly Report on Form 10-Q
for the quarter
ended June 30, 2005, as filed with the Securities Exchange
Commission
on August 1, 2005.
|