GCBS Greene County Bancshares (MM)

Greene County Bancshares, Inc. (NASDAQ/NM: GCBS), the third largest bank holding company headquartered in the State of Tennessee, today announced strong operating and financial results for the first quarter ended March 31, 2006. These record results, underscored by a 37% year-over-year increase in diluted earnings per share, reflected continued improvement in credit quality, the impact of the Company's fourth quarter 2005 acquisition of five branches in Clarksville, Tennessee, and expansion in the Company's net interest margin. First quarter net income increased 74% to $5,096,000 from $2,935,000 in the same 2005 period. Earnings per diluted share rose 37% to $0.52 the first quarter of 2006 versus $0.38 for the year-earlier quarter. The disproportionate increase in per share earnings results from the issuance of approximately 2.2 million shares of new common stock during the fourth quarter of 2005 in connection with the Clarksville transaction. On a linked-quarter basis, both first quarter 2006 net income and diluted earnings per share rose by 33% from the fourth quarter of 2005. The Company's profitability ratios, as measured by Return on Average Assets (ROAA), Return on Average Equity (ROAE), and Return on Average Tangible Equity (ROATE), all improved notably when compared with year-ago ratios as well as those on a linked-quarter basis. The Company's ROAA improved from 0.93% in the first quarter of last year to 0.98% in the fourth quarter of 2005 to 1.27% for the current quarter. ROAE demonstrated a similar trend, although distorted slightly in the fourth quarter of 2005 due to the issuance of new stock. ROAE improved from 10.58% in the first quarter of 2005 to 11.86% in the current quarter. Similarly, ROATE improved from 13.44% in the first quarter of 2005 to 15.41% for the first quarter of 2006. The Company's Efficiency Ratio also reflected continued improvement, declining from 62.26% in the first quarter of 2005 to 61.21% in the fourth quarter of 2005 and 57.55% for the current quarter. Net interest income for the first quarter increased 29% to $17,186,000 from $13,327,000 in the prior-year period, driven by a 29% increase in average loans outstanding. Net interest margin for the first quarter of 2006 advanced to 4.80% from 4.64% in the same period a year ago. On a linked-quarter basis, net interest margin improved by 13 basis points from 4.67% reported for the fourth quarter of 2005. The Company's provision for loan losses was $1,064,000 in the current quarter compared with $1,622,000 for the same period last year. This decline primarily reflected continued improvements in asset quality. GCBS Reports First Quarter Results Page 2 April 18, 2006 Commenting on the announcement, Stan Puckett, Chairman and Chief Executive Officer, said, "We are pleased with our strong performance during the first quarter of 2006 compared with the first quarter of last year, which was spurred by the expansion efforts undertaken throughout 2005. Because of this and organic growth, loan volume in the first quarter of 2006 increased 7.5% on an annualized basis, which was below recent quarters and the result of a keenly competitive interest rate environment. However, we will continue to remain disciplined relative to loan pricing due to its impact on our net interest margin. We also witnessed an ongoing improvement in credit quality, as nonperforming loans declined as a percentage of both total loans and total assets - down 23 basis points and 18 basis points, respectively, versus the first quarter of 2005, and 14 basis points and 16 basis points, respectively, compared with the end of 2005. Moreover, the trend in net charge-offs continued to decline, falling to 0.21% of average total loans in the first quarter of 2006 versus 0.29% of average loans in the year-earlier period and 0.32% at year-end 2005. On a bank-only basis, net charge-offs declined to 0.15% in the first quarter of 2006 from 0.16% in the year-earlier period and 0.21% at December 31, 2005. "Concurrent with the expansion of our branch footprint and the growth we have experienced on the asset side of our balance sheet, we have worked diligently to build our deposit base in a competitive marketplace," Puckett continued. "Although total deposits declined slightly from year-end 2005 as we continued to manage our funding alternatives, deposits increased 20% versus the first quarter of 2005. A major factor in this growth has been the success of our High Performance Checking program, initiated in February 2005, which has resulted in the opening of 17,406 new accounts since inception. The business version of this product also has been productive for us, with 2,022 new accounts opened since we started the program in November 2005." Concluding, Puckett added, "We are pleased with the Company's performance in the first quarter and consider it an excellent beginning to 2006. In little more than one year, we have entered two major markets and have made important inroads in Nashville and Knoxville. We expect that this growth will continue to increase in significance as the year unfolds. We are also very aware of the challenges facing not only the Company, but the financial services industry in general, as the current economic environment continues to evolve. We believe that the solid underpinnings we have in place relative to credit quality and overall financial discipline will continue to serve us well in the future." At March 31, 2006, the Company's total assets declined 1% to $1,608,240,000 from $1,619,989,000 at December 31, 2005, but were 22% higher compared with total assets of $1,320,363,000 at March 31, 2005. Loans, net of unearned interest, increased 2% to $1,404,627,000 at March 31, 2006, from year-end 2005 net loans of $1,378,642,000, and were 26% higher compared with net loans of $1,114,731,000 at March 31, 2005. Deposits declined 1% to $1,285,738,000 at March 31, 2006, compared with $1,295,879,000 at December 31, 2005, but were 20% higher compared with $1,074,313,000 at March 31, 2005. Total shareholders' equity increased 3% to $172,317,000 at March 31, 2006, versus $168,021,000 at December 31, 2005, and was up 56% from shareholders' equity of $110,669,000 a year ago, with the comparisons against both earlier periods reflecting earnings growth as well as the net proceeds from the Company's public common stock offering during the second half of 2005. Greeneville, Tennessee-based Greene County Bancshares, Inc., with total assets of approximately $1.6 billion, is the holding company for Greene County Bank. Greene County Bank, founded in 1890, now has 48 branches throughout East and Middle Tennessee, one branch in Bristol, Virginia, one branch in western North Carolina, and a trust services office in Lebanon, Tennessee. Greene County Bank does business in Washington County, Tennessee, as Washington County Bank; in Blount County and Knox County, Tennessee, as American Fidelity Bank; in Montgomery County, Tennessee, as Clarksville Community Bank; in Sumner County, Tennessee, as First Independent Bank; in Rutherford County, Tennessee, as Rutherford Bank and Trust; in Sullivan County, Tennessee, as Sullivan County Bank and First Bristol Bank; in Hamblen County, Tennessee, as Hamblen County Bank; in McMinn County, Tennessee, as Bank of Athens and Bank of Niota; in Hawkins County, Tennessee, as Hawkins County Bank and Bank of Bulls Gap; in Lawrence County, Tennessee, as Bank of Lawrence County; in Cocke County, Tennessee, as Cocke County Bank; in Loudon County, Tennessee, as Community Bank of Loudon County; in Monroe County, Tennessee, as Community Trust Bank; in the City of Bristol, Virginia, as First Bristol Bank; in Davidson County and Williamson County, Tennessee, as Middle Tennessee Bank & Trust; and in Wilson County, Tennessee, as President's Trust. In addition, Greene County Bank 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 subprime automobile lending; and Fairway Title Co., a title insurance company. This news release may contain forward-looking statements regarding Greene County Bancshares, Inc., as defined in Section 21E of the Securities Exchange Act of 1934. 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. A discussion of factors that could cause actual results to differ materially from those expressed in the forward-looking statements is included in the Greene County Bancshares, Inc. filings with the Securities and Exchange Commission. -0- *T GREENE COUNTY BANCSHARES, INC. Unaudited Financial Highlights (In thousands, except per share amounts) Three Months Ended ------------------------------------ March 31, Dec. 31, March 31, 2006 2005 2005 ---------- ---------- ---------- Interest income $ 26,767 $ 25,638 $ 18,735 Interest expense 9,581 8,799 5,408 ---------- ---------- ---------- Net interest income 17,186 16,839 13,327 Provision for loan losses 1,064 1,979 1,622 ---------- ---------- ---------- Net interest income after provision for loan losses 16,122 14,860 11,705 Non-interest income 4,755 4,321 3,176 Non-interest expense 12,706 12,952 10,275 ---------- ---------- ---------- Income before income taxes 8,171 6,229 4,606 Income taxes 3,075 2,391 1,671 ---------- ---------- ---------- Net income $ 5,096 $ 3,838 $ 2,935 ========== ========== ========== Comprehensive income $ 5,089 $ 3,627 $ 2,822 ========== ========== ========== Earnings per share: Basic $ 0.52 $ 0.40 $ 0.38 ========== ========== ========== Diluted $ 0.52 $ 0.39 $ 0.38 ========== ========== ========== Weighted average shares: Basic 9,771 9,710 7,649 ========== ========== ========== Diluted 9,871 9,800 7,744 ========== ========== ========== Dividends declared per share $ 0.12 $ 0.26 $ 0.12 ========== ========== ========== March 31, Dec. 31, March 31, 2006 2005 2005 ---------- ---------- ---------- Total assets $1,608,240 $1,619,989 $1,320,363 Cash and cash equivalents 40,530 74,523 72,067 Investment securities 54,155 58,736 59,741 Loans, net of unearned interest 1,404,627 1,378,642 1,114,731 Allowance for loan losses 20,083 19,739 16,564 Deposits 1,285,738 1,295,879 1,074,313 Shareholders' equity 172,317 168,021 110,669 Tangible shareholders' equity (1) 132,965 128,399 87,162 Book value per share 17.62 17.20 14.47 Tangible book value per share (1) 13.59 13.15 11.39 (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. GREENE COUNTY BANCSHARES, INC. Condensed Consolidated Balance Sheets March 31, 2006, December 31, 2005 and March 31, 2005 (Dollars in thousands except share and per share data) (Unaudited) (Unaudited) March 31, December 31, March 31, 2006 2005 (1) 2005 ------------ ------------ ------------ ASSETS ------ Cash and due from banks $ 39,189 $ 46,136 $ 30,440 Federal funds sold 1,341 28,387 41,627 Securities available-for-sale ("AFS") 44,311 48,868 49,538 Securities held-to-maturity (with a market value of $3,003, $3,335 and $3,988 on March 31, 2006, December 31, 2005 and March 31, 2005) 3,049 3,379 3,931 FHLB, Bankers Bank and other stock, at cost 6,795 6,489 6,272 Loans held for sale 1,957 2,686 1,952 Loans, net of unearned interest 1,404,627 1,378,642 1,114,731 Allowance for loan losses (20,083) (19,739) (16,564) Bank premises and equipment, net of accumulated depreciation 52,109 49,985 35,590 Goodwill and other intangible assets 39,352 39,622 23,507 Other assets 35,593 35,534 29,339 ------------ ------------ ------------ Total Assets $ 1,608,240 $ 1,619,989 $ 1,320,363 ============ ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Deposits $ 1,285,738 $ 1,295,879 $ 1,074,313 Repurchase agreements 17,966 17,498 15,117 FHLB advances and notes payable 97,052 105,146 95,187 Subordinated debentures 13,403 13,403 10,310 Accrued interest payable and other liabilities 21,764 20,042 14,767 ------------ ------------ ------------ Total Liabilities 1,435,923 1,451,968 1,209,694 ------------ ------------ ------------ SHAREHOLDERS' EQUITY -------------------- Common Stock: $2 par value, 15,000,000 shares authorized; 9,781,070, 9,766,336 and 7,650,816 shares outstanding 19,562 19,533 15,302 Paid in Capital 71,052 70,700 24,201 Retained Earnings 82,080 78,158 71,306 Accumulated Other Comprehensive Income (Loss) (377) (370) (140) ------------ ------------ ------------ Total Shareholders' Equity 172,317 168,021 110,669 ------------ ------------ ------------ Total Liabilities & Shareholders' Equity $ 1,608,240 $ 1,619,989 $ 1,320,363 ============ ============ ============ (1) Derived from Audited Consolidated Financial Statements. GREENE COUNTY BANCSHARES, INC. Condensed Consolidated Statements of Income and Comprehensive Income Three Months Ended March 31, 2006 and 2005 and December 31, 2005 (Unaudited) (Dollars in thousands except share and per share data) Three Months Ended -------------------------------------- March 31, December 31, March 31, 2006 2005 2005 ------------ ------------ ------------ Interest Income: ---------------- Interest and Fees on Loans $ 26,100 $ 24,809 $ 18,079 Interest on Investment Securities 631 649 473 Interest on Federal Funds Sold and Interest-earning Deposits 36 180 183 ------------ ------------ ------------ Total Interest Income 26,767 25,638 18,735 ------------ ------------ ------------ Interest Expense: ----------------- Interest on Deposits 8,042 7,433 4,262 Interest on Borrowings 1,539 1,366 1,146 ------------ ------------ ------------ Total Interest Expense 9,581 8,799 5,408 ------------ ------------ ------------ Net Interest Income 17,186 16,839 13,327 Provision for Loan Losses 1,064 1,979 1,622 ------------ ------------ ------------ Net Interest Income after Provision for Loan Losses 16,122 14,860 11,705 ------------ ------------ ------------ Noninterest Income: ------------------- Service Charges, Commissions and Fees 3,231 3,546 2,142 Other Income 1,524 775 1,034 ------------ ------------ ------------ Total Noninterest Income 4,755 4,321 3,176 ------------ ------------ ------------ Noninterest Expense: -------------------- Salaries and Benefits 6,391 6,475 5,245 Occupancy and Furniture and Equipment Expense 2,059 1,939 1,739 Other Expenses 4,256 4,538 3,291 ------------ ------------ ------------ Total Noninterest Expense 12,706 12,952 10,275 ------------ ------------ ------------ Income Before Income Taxes 8,171 6,229 4,606 Income Taxes 3,075 2,391 1,671 ------------ ------------ ------------ Net Income $ 5,096 $ 3,838 $ 2,935 ============ ============ ============ Comprehensive Income $ 5,089 $ 3,627 $ 2,822 ============ ============ ============ Per Share of Common Stock: -------------------------- Basic Earnings $ 0.52 $ 0.40 $ 0.38 ============ ============ ============ Diluted Earnings $ 0.52 $ 0.39 $ 0.38 ============ ============ ============ Dividends $ 0.12 $ 0.26 $ 0.12 ============ ============ ============ Weighted Average Shares Outstanding: ----------------------- Basic 9,770,555 9,709,731 7,649,070 ============ ============ ============ Diluted 9,870,691 9,799,609 7,744,181 ============ ============ ============ GREENE COUNTY BANCSHARES, INC. Consolidated Financial Highlights (UNAUDITED) (Dollars in thousands except share and per share data) March 31, December 31, % 2006 2005 Change ------------ ------------ --------- Financial Condition Data: ------------------------- Assets $ 1,608,240 $ 1,619,989 -0.73% Loans, net of unearned interest 1,404,627 1,378,642 1.88% Cash and investments 93,344 104,872 -10.99% Federal funds sold 1,341 28,387 -95.28% Deposits 1,285,738 1,295,879 -0.78% FHLB advances and notes payable 97,052 105,146 -7.70% Subordinated debentures 13,403 13,403 0.00% Federal funds purchased and repurchase agreements 17,966 17,498 2.67% Shareholders' equity 172,317 168,021 2.56% Tangible shareholders' equity (1) 132,965 128,399 3.56% Ratios: ------- Book value per share $ 17.62 $ 17.20 2.44% Tangible book value per share (1) $ 13.59 $ 13.15 3.35% Average equity to average assets 10.74% 9.20% 16.74% Dividend payout ratio 23.04% 37.38%(2) -38.36% (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. (2) Includes special dividend of $.14 per share paid in December 2005. Three Months Ended March 31, ------------------------- 2006 2005 Change ------------ ------------ --------- Operating Data: --------------- Total Interest Income $ 26,767 $ 18,735 42.87% Total Interest Expense 9,581 5,408 77.16% ------------ ------------ --------- Net Interest Income 17,186 13,327 28.96% Provision for Loan Losses 1,064 1,622 -34.40% ------------ ------------ --------- Net Interest Income After Provision for Loan Losses 16,122 11,705 37.74% Non-Interest Income 4,755 3,176 49.72% Non-Interest Expense 12,706 10,275 23.66% ------------ ------------ --------- Income Before Income Taxes 8,171 4,606 77.40% ------------ ------------ --------- Income Tax Expense 3,075 1,671 84.02% ------------ ------------ --------- Net Income $ 5,096 $ 2,935 73.63% ============ ============ ========= Comprehensive Income $ 5,089 $ 2,822 80.33% ============ ============ ========= Per Share of Common Stock: -------------------------- Basic Earnings $ 0.52 $ 0.40 30.00% ============ ============ ========= Diluted Earnings $ 0.52 $ 0.39 33.33% ============ ============ ========= Dividends $ 0.12 $ 0.12 0.00% ============ ============ ========= Weighted Average Shares Outstanding: ------------------------------------ Basic 9,709,731 7,649,070 ============ ============ Diluted 9,799,609 7,744,181 ============ ============ Three Months Ended -------------------------------------- March 31, December 31, March 31, 2006 2005 2005 ------------ ------------ ------------ Key Financial Ratios: --------------------- Return on Average Assets 1.27% 0.98% 0.93% Return on Average Shareholders' Equity 11.86% 9.10% 10.58% Return on Average Tangible Shareholders' Equity (1) 15.41% 11.65% 13.44% Interest Rate Spread 4.42% 4.29% 4.39% Net Interest Margin 4.80% 4.67% 4.64% Efficiency Ratio 57.55% 61.21% 62.26% (1) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets. March 31, December 31, March 31, 2006 2005 2005 ------------ ------------ ------------ Asset Quality Ratios: --------------------- Nonperforming Loans as a Percentage of Total Loans, net of Unearned Income 0.35% 0.49% 0.58% Nonperforming Assets as a Percentage of Total Assets 0.49% 0.65% 0.67% Allowance for Loan Losses as a Percentage of Total Loans, net of Unearned Income 1.43% 1.43% 1.49% Allowance for Loan Losses as a Percentage of Nonperforming Assets 252.55% 188.58% 187.12% Net Charge-Offs to Average Total Loans, Net of Unearned Income 0.21% 0.32% 0.29% GREENE COUNTY BANCSHARES, INC. Consolidated Financial Highlights March 31, 2006 (UNAUDITED) Nonperforming Assets and Net Charge-offs ---------------------------------------- As of and for the three months ended March 31, 2006 Bank Other Total ------------------------------ ------------ ------------ ------------ Loans past due 90 days and still accruing $ 20 $ 5 $ 25 Nonaccrual loans 4,590 341 4,931 Other real estate owned and repossessed assets 2,752 244 2,996 ------------ ------------ ------------ Total nonperforming assets $ 7,362 $ 590 $ 7,952 ============ ============ ============ Annualized net charge-offs $ 2,080 $ 800 $ 2,880 ============ ============ ============ As of and for the three months ended March 31, 2005 Bank Other Total ------------------------------ ------------ ------------ ------------ Loans past due 90 days and still accruing $ 1,225 $ - $ 1,225 Nonaccrual loans 4,519 689 5,208 Other real estate owned and repossessed assets 2,237 182 2,419 ------------ ------------ ------------ Total nonperforming assets $ 7,981 $ 871 $ 8,852 ============ ============ ============ Annualized net charge-offs $ 1,740 $ 1,376 $ 3,116 ============ ============ ============ As of and for the year ended December 31, 2005 Bank Other Total ---------------------------- ------------ ------------ ------------ Loans past due 90 days and still accruing $ 809 $ - $ 809 Nonaccrual loans 5,393 522 5,915 Other real estate owned and repossessed assets 3,396 347 3,743 ------------ ------------ ------------ Total nonperforming assets $ 9,598 $ 869 $ 10,467 ============ ============ ============ Net charge-offs $ 2,490 $ 1,324 $ 3,814 ============ ============ ============ Asset Quality Ratios -------------------- As of and for the three months ended March 31, 2006 Bank Other Consolidated ------------------------------ ------------ ------------ ------------ Nonperforming loans as a percentage of total loans, net of unearned income 0.33% 1.11% 0.35% Nonperforming assets as a percentage of total assets 0.46% 1.68% 0.49% Allowance for loan losses as a percentage of total loans, net of unearned income 1.26% 7.94% 1.43% Allowance for loan losses as a percentage of nonperforming assets 239.12% 420.17% 252.55% Annualized net charge-offs to average total loans, net of unearned income 0.15% 2.59% 0.21% As of and for the three months ended March 31, 2005 Bank Other Consolidated ------------------------------ ------------ ------------ ------------ Nonperforming loans as a percentage of total loans, net of unearned income 0.52% 2.17% 0.58% Nonperforming assets as a percentage of total assets 0.61% 2.60% 0.67% Allowance for loan losses as a percentage of total loans, net of unearned income 1.27% 7.76% 1.49% Allowance for loan losses as a percentage of nonperforming assets 176.73% 282.32% 187.12% Annualized net charge-offs to average total loans, net of unearned income 0.16% 4.35% 0.29% As of and for the year ended December 31, 2005 Bank Other Consolidated ---------------------------- ------------ ------------ ------------ Nonperforming loans as a percentage of total loans, net of unearned income 0.45% 1.68% 0.49% Nonperforming assets as a percentage of total assets 0.59% 2.37% 0.65% Allowance for loan losses as a percentage of total loans, net of unearned income 1.26% 7.89% 1.43% Allowance for loan losses as a percentage of nonperforming assets 180.06% 282.74% 188.58% Net charge-offs to average total loans, net of unearned income 0.21% 4.22% 0.32% GREENE COUNTY BANCSHARES, INC. Condensed Average Balances, Interest Rates and Yields March 31, 2006 Three Months Ended March 31, -------------------------------------- 2006 ------------ ------------ ------------ Average Average Balance Interest Rate ------------ ------------ ------------ Interest-earning assets: ------------------------ Loans 1,392,401 26,100 7.60% Investment securities 56,446 631 4.53% Other short-term investments 3,374 36 4.33% ------------ ------------ ------------ Total interest-earning assets 1,452,221 26,767 7.48% ------------ ------------ ------------ Non-interest earning assets 147,140 ------------ Total assets 1,599,361 ============ Interest-bearing liabilities: ----------------------------- Deposits: ----------- Now accounts, money market and savings 520,821 2,576 2.01% Time deposits 626,047 5,466 3.54% ------------ ------------ ------------ Total interest bearing- deposits 1,146,868 8,042 2.84% ------------ ------------ ------------ Securities sold under repurchase and short-term borrowings 21,678 207 3.87% Notes payable 101,629 1,332 5.32% ------------ ------------ ------------ Total interest-bearing liabilities 1,270,175 9,581 3.06% ------------ ------------ ------------ Non-Interest Bearing Liabilities: ---------------------- Demand Deposits 140,044 Other Liabilities 17,312 ------------ Total Non-Interest Bearing Liabilities 157,356 ------------ Total liabilities 1,427,531 ------------ Shareholders' equity 171,830 Total liabilities & shareholders' equity 1,599,361 ============ Net interest income 17,186 ============ Interest rate spread 4.42% ============ Net yield on interest-earning assets (net interest margin) 4.80% ============ Three Months Ended March 31, -------------------------------------- 2005 ------------ ------------ ------------ Average Average Balance Interest Rate ------------ ------------ ------------ Interest-earning assets: ------------------------ Loans 1,079,588 18,079 6.79% Investment securities 51,004 473 3.76% Other short-term investments 34,127 183 2.17% ------------ ------------ ------------ Total interest-earning assets 1,164,719 18,735 6.52% ------------ ------------ ------------ Non-interest earning assets 102,563 ------------ Total assets 1,267,282 ============ Interest-bearing liabilities: ----------------------------- Deposits: ----------- Now accounts, money market and savings 388,983 866 0.90% Time deposits 523,974 3,396 2.63% ------------ ------------ ------------ Total interest bearing- deposits 912,957 4,262 1.89% ------------ ------------ ------------ Securities sold under repurchase and short-term borrowings 18,429 89 1.96% Notes payable 92,543 1,057 4.63% ------------ ------------ ------------ Total interest-bearing liabilities 1,023,929 5,408 2.14% ------------ ------------ ------------ Non-Interest Bearing Liabilities: ---------------------- Demand Deposits 116,854 Other Liabilities 15,544 ------------ Total Non-Interest Bearing Liabilities 132,398 ------------ Total liabilities 1,156,327 ------------ Shareholders' equity 110,955 Total liabilities & shareholders' equity 1,267,282 ============ Net interest income 13,327 ============ Interest rate spread 4.38% ============ Net yield on interest-earning assets (net interest margin) 4.64% ============ GREENE COUNTY BANCSHARES, INC. Consolidated Financial Highlights March 31, 2006 (UNAUDITED) March 31, 2006 ------------------------- Loans Balance % ----- ------------ ------------ Commercial $ 253,935 17.95% Commercial real estate 766,361 54.16% Residential real estate 305,951 21.62% Consumer 86,750 6.13% Other 1,915 0.14% ------------ ------------ 1,414,912 100.00% ============ Less: Unearned interest income (10,285) ------------ Total $ 1,404,627 ============ Loan Balances by Banking Units and Operating Subsidiaries --------------------------------------------------------- March 31, 2006 ------------------------- Loan % to Balance Total Loans ------------ ------------ Greene County Bank $ 113,670 8.09% American Fidelity Bank 466,263 33.21% Bank of Athens 45,830 3.26% Bank of Bulls Gap 5,220 0.37% Bank of Niota 10,046 0.72% Clarksville Community Bank 103,025 7.33% Cocke County Bank 6,018 0.43% Community Bank of Loudon County 20,976 1.49% Community Trust Bank 9,321 0.66% First Bristol Bank 60,392 4.30% First Independent Bank 63,721 4.54% Hamblen County Bank 48,096 3.42% Hawkins County Bank 33,038 2.35% Bank of Lawrence County 23,055 1.64% Middle Tennessee Bank and Trust 98,120 6.99% Rutherford Bank and Trust 88,740 6.32% Sullivan County Bank 16,328 1.16% Washington County Bank 161,563 11.50% GCB Acceptance Corporation 12,365 0.88% Superior Financial Services, Inc. 18,840 1.34% ------------ ------------ Totals $ 1,404,627 100.00% ============ ============ March 31, 2006 ------------------------- Deposits Balance % -------- ------------ ------------ Non-interest bearing demand $ 148,781 11.58% Interest bearing demand 302,962 23.56% Money market and savings 233,423 18.15% Retail time 414,286 32.22% Jumbo time 186,286 14.49% ------------ ------------ Total $ 1,285,738 100.00% ============ ============ Deposit Balances by Banking Units and Operating Subsidiaries ------------------------------------------------------------ March 31, 2006 ------------------------- Balance % ------------ ------------ Greene County Bank $ 312,727 24.32% American Fidelity Bank 183,885 14.30% Bank of Athens 34,965 2.72% Bank of Bulls Gap 17,395 1.35% Bank of Niota 17,162 1.33% Clarksville Community Bank 167,066 12.99% Cocke County Bank 29,283 2.28% Community Bank of Loudon County 23,889 1.86% Community Trust Bank 5,335 0.41% First Bristol Bank 36,874 2.87% First Independent Bank 100,871 7.85% Hamblen County Bank 62,727 4.88% Hawkins County Bank 46,738 3.64% Bank of Lawrence County 71,168 5.54% Middle Tennessee Bank and Trust 35,029 2.72% Rutherford Bank and Trust 52,690 4.10% Sullivan County Bank 12,561 0.98% Washington County Bank 75,373 5.86% GCB Acceptance Corporation - 0.00% Superior Financial Services, Inc. - 0.00% ------------ ------------ $ 1,285,738 100.00% ============ ============ December 31, 2005 ------------------------- Loans Balance % % Change ------------ ------------ --------- Commercial $ 245,285 17.67% 3.53% Commercial real estate 729,254 52.52% 5.09% Residential real estate 319,797 23.03% -4.33% Consumer 90,682 6.53% -4.34% Other 3,476 0.25% -44.91% ------------ ------------ --------- 1,388,494 100.00% 1.90% ============ ========= Less: Unearned interest income (9,852) ------------ Total $ 1,378,642 ============ Loan Balances by Banking Units and Operating Subsidiaries --------------------------------------------------------- December 31, 2005 ------------------------- Loan % to Balance Total Loans % Change ------------ ------------ --------- Greene County Bank $ 113,213 8.21% 0.40% American Fidelity Bank 447,261 32.46% 4.25% Bank of Athens 46,744 3.39% -1.96% Bank of Bulls Gap 5,273 0.38% -1.01% Bank of Niota 10,478 0.76% -4.12% Clarksville Community Bank 107,660 7.81% -4.31% Cocke County Bank 6,021 0.44% -0.05% Community Bank of Loudon County 23,362 1.69% -10.21% Community Trust Bank 9,937 0.72% -6.20% First Bristol Bank 57,661 4.18% 4.74% First Independent Bank 65,391 4.74% -2.55% Hamblen County Bank 48,944 3.55% -1.73% Hawkins County Bank 31,887 2.31% 3.61% Bank of Lawrence County 24,222 1.76% -4.82% Middle Tennessee Bank and Trust 87,351 6.34% 12.33% Rutherford Bank and Trust 83,590 6.06% 6.16% Sullivan County Bank 16,865 1.22% -3.18% Washington County Bank 161,643 11.72% -0.05% GCB Acceptance Corporation 12,140 0.88% 1.85% Superior Financial Services, Inc. 18,999 1.38% -0.84% ------------ ------------ --------- Totals $ 1,378,642 100.00% 1.88% ============ ============ ========= December 31, 2005 ------------------------- Deposits Balance % % Change -------- ------------ ------------ --------- Non-interest bearing demand $ 144,216 11.13% 3.17% Interest bearing demand 268,714 20.74% 12.75% Money market and savings 245,740 18.96% -5.01% Retail time 425,506 32.83% -2.64% Jumbo time 211,703 16.34% -12.01% ------------ ------------ --------- Total $ 1,295,879 100.00% -0.78% ============ ============ ========= Deposit Balances by Banking Units and Operating Subsidiaries ------------------------------------------------------------ December 31, 2005 ------------------------- Balance % % Change ------------ ------------ --------- Greene County Bank $ 322,396 24.90% -3.00% American Fidelity Bank 184,874 14.27% -0.53% Bank of Athens 26,280 2.03% 33.05% Bank of Bulls Gap 16,181 1.25% 7.50% Bank of Niota 16,237 1.25% 5.70% Clarksville Community Bank 169,032 13.04% -1.16% Cocke County Bank 28,314 2.18% 3.42% Community Bank of Loudon County 24,507 1.89% -2.52% Community Trust Bank 6,539 0.50% -18.41% First Bristol Bank 47,351 3.65% -22.13% First Independent Bank 101,071 7.80% -0.20% Hamblen County Bank 52,998 4.09% 18.36% Hawkins County Bank 47,484 3.66% -1.57% Bank of Lawrence County 70,519 5.44% 0.92% Middle Tennessee Bank and Trust 38,919 3.00% -10.00% Rutherford Bank and Trust 51,903 4.01% 1.52% Sullivan County Bank 13,671 1.05% -8.12% Washington County Bank 77,603 5.99% -2.87% GCB Acceptance Corporation - 0.00% - Superior Financial Services, Inc. - 0.00% - ------------ ------------ --------- $ 1,295,879 100.00% -0.78% ============ ============ ========= *T