Green Bankshares Inc. (GRNB, Financial) filed Quarterly Report for the period ended 2012-03-31.
Green Bankshrs has a market cap of $230.4 million; its shares were traded at around $1.79 with and P/S ratio of 66.6.
First quarter 2011 net interest income totaled $19,267,000. The net interest margin was 3.77% in the first quarter of 2011, reflecting an average yield of 5.20% on earning assets versus an average cost of 1.42% on interest-bearing liabilities. Loans, accounting for 75% of earning assets, had a yield of 6.37% while securities and short-term investments produced yields of 3.57% and 0.25%, respectively. Interest checking, savings and money market deposits represented 59% of interest-bearing deposits, and had an average yield of 0.68% while time deposits, represented 41% of interest-bearing deposits, with an average yield of 1.87%.
The following table, for which dollars are in thousands, presents average balances of the Predecessor Company, the taxable-equivalent interest earned, and the rate paid thereon during the three months ended March 31, 2011. A comparable analysis is not presented for the three months ended March 31, 2012 given that the Successor Company has no interest earning assets.
Service charges on deposits represented the largest source of non-interest income, accounting for $5.8 million or 76% of total non-interest income for the three months ended March 31, 2011. The Company recorded $515,000 of trust and investment services income and $323,000 of earnings on bank owned life insurance.
The provision for income taxes includes federal and state income taxes. Fluctuations in effective tax rates reflect the effect of the differences in the inclusion or deductibility of certain income and expenses, respectively, for income tax purposes. The effective income tax rate for the three months ended March 31, 2012 was approximately (10%). Due to the equity method of accounting for the Companys investment in Capital Bank, NA, the effective tax rate reflected in the current period was lower than the statutory tax rate. As the equity in income from investment in Capital Bank, NA is net of income tax expense, such earnings are treated as a permanent difference and are not included in taxable income. Excluding the impact of the equity method earnings from Capital Bank, NA, the effective income tax rate for the three months ended March 31, 2012 would have been approximately 37%.
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Green Bankshrs has a market cap of $230.4 million; its shares were traded at around $1.79 with and P/S ratio of 66.6.
Highlight of Business Operations:
The mergers of the Bank, Capital Bank and TIB Bank into Capital Bank, NA were restructuring transactions between commonly-controlled entities. The difference between the amount of the Companys initial equity method investment in Capital Bank, NA, subsequent to the Bank Merger, and the Companys investment in the Bank, immediately preceding the Bank Merger, was accounted for as a change to additional paid in capital. Additionally, at the time of the Bank Merger, due to the de-consolidation of the Bank, the balance of accumulated other comprehensive income was reclassified as additional paid in capital. As the Company began to account for its investment in the combined entity under the equity method subsequent to September 7, 2011, the Companys proportional share of earnings of $3,995 was recorded in Equity in income from investment in Capital Bank, NA. in the Companys Consolidated Statements of Income for the three months ended March 31, 2012.First quarter 2011 net interest income totaled $19,267,000. The net interest margin was 3.77% in the first quarter of 2011, reflecting an average yield of 5.20% on earning assets versus an average cost of 1.42% on interest-bearing liabilities. Loans, accounting for 75% of earning assets, had a yield of 6.37% while securities and short-term investments produced yields of 3.57% and 0.25%, respectively. Interest checking, savings and money market deposits represented 59% of interest-bearing deposits, and had an average yield of 0.68% while time deposits, represented 41% of interest-bearing deposits, with an average yield of 1.87%.
The following table, for which dollars are in thousands, presents average balances of the Predecessor Company, the taxable-equivalent interest earned, and the rate paid thereon during the three months ended March 31, 2011. A comparable analysis is not presented for the three months ended March 31, 2012 given that the Successor Company has no interest earning assets.
Service charges on deposits represented the largest source of non-interest income, accounting for $5.8 million or 76% of total non-interest income for the three months ended March 31, 2011. The Company recorded $515,000 of trust and investment services income and $323,000 of earnings on bank owned life insurance.
The provision for income taxes includes federal and state income taxes. Fluctuations in effective tax rates reflect the effect of the differences in the inclusion or deductibility of certain income and expenses, respectively, for income tax purposes. The effective income tax rate for the three months ended March 31, 2012 was approximately (10%). Due to the equity method of accounting for the Companys investment in Capital Bank, NA, the effective tax rate reflected in the current period was lower than the statutory tax rate. As the equity in income from investment in Capital Bank, NA is net of income tax expense, such earnings are treated as a permanent difference and are not included in taxable income. Excluding the impact of the equity method earnings from Capital Bank, NA, the effective income tax rate for the three months ended March 31, 2012 would have been approximately 37%.
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