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The divide between rich and poor can be bridged through education. This is what Dream School Foundation (DSF) believes and aims to implement.
The Company believes that the exclusionof goodwill impairment in expressing net operating income (loss), operatingexpenses and earnings (loss) per share data provides a more meaningful base forperiod to period comparisons which will assist investors in analyzing theoperating results of the Company and predicting operating performance. The goodwill impairment charge isincluded in the financial results presented in accordance with generallyaccepted accounting principles (GAAP). Inaddition, GreenBank conducts separate businesses through three wholly ownedsubsidiaries: Superior Financial Services, Inc., a consumer finance company; GCBAcceptance Corporation, a consumer finance company specializing in automobilelending; and Fairway Title Co., a title insurance company. It also provides wealth management services through its GreenWealthDivision and residential mortgage lending through its Mortgage Division. GreenBank,which traces its origin to 1890, has 63 branches across East and MiddleTennessee, and one branch each in Bristol, Virginia, and Hot Springs, NorthCarolina. We are cautiously optimistic that,as the economy begins to turn, given our strong capital levels, we will bepositioned to actively participate in the economic recovery cycle." Greeneville, Tennessee-based Green Bankshares, Inc., with total assets ofapproximately $2.630 billion, is the holding company for GreenBank. Puckett concluded, "Although many economists have indicated that the economy hasbottomed, none are projecting, at this time, how long the bottom will lastbefore we see signs of economic improvement.
Operatingexpenses, excluding the goodwill impairment charge, totaled $25,754,000 for thecurrent quarter, an increase of $7,923,000 from the first quarter of 2009.(Please refer to the reconciliation of non-GAAP measures included on page fourof this release.) The large expense items associated with the second quarterincrease were higher advertising costs associated with the High PerformanceChecking product, which rose $615,000; an increase of $3,265,000 in OREO relatedcosts; the increase of $1,850,000 in FDIC deposit insurance costs associatedwith the one-time special assessment levied against all banks; higher collectioncosts of $413,000; and a write-down of $524,000 taken in connection with twoinvestments held in the securities portfolio. Compared with thesecond quarter of 2008, non-interest income declined $571,000 or 7%, reflectinggeneral weakness in the economy. Non-interest expense totaled $169,143,000 for the second quarter of 2009 andincluded the $143,389,000 non-cash goodwill impairment charge. Improvements were realized in deposit revenues as well as wealthmanagement income and mortgage banking income.
Given the current environment,GreenBank's High Performance Checking account product continues to perform well,with the Company adding 4,418 net new accounts during the second quarter for anew account opening ratio of 2.31 for every account closed. Non-interest income for the second quarter of 2009 totaled $7,541,000, whichrepresented an increase of $598,000 or almost 9% from the first quarter of theyear. Compared with thesecond quarter of 2008, net interest income declined $4,864,000 primarily due tothe higher level of non-accrual loans. At June 30, 2009, non-performing assets (NPAs) totaled $129,177,000 or 4.91% oftotal assets compared with $121,272,000 or 4.34% of total assets at March 31,2009. The increase primarily resulted from a widening of the net interestmargin to 3.43% from 3.23% for the first quarter of 2009.
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