Segment Information

12 Months Ended

Dec. 31, 2011

NOTE 19 – SEGMENT INFORMATION

The Successor’s Company has a single operating segment, its 34% ownership of Capital Bank, NA, which is accounted for using the equity method. Thus, segment information is not relevant for the Successor Company.

The Predecessor Company’s operating segments include banking, mortgage banking, consumer finance, automobile lending and title insurance. The reportable segments are determined by the products and services offered, and internal reporting. Loans, investments and deposits provide the revenues in the banking operation; loans and fees provide the revenues in consumer finance and mortgage banking and insurance commissions provide revenues for the title insurance company. Consumer finance, automobile lending and title insurance do not meet the quantitative threshold on an individual basis, and are therefore shown below in “Other Segments”. Mortgage banking operations are included in “Bank”. All operations are domestic.

Predecessor Company segment performance is evaluated using net interest income and non-interest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on time spent for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows.


Predecessor Company Jan 1, 2011 through Sept 7, 2011	Banking			Other Segments		Holding Company			Eliminations			Total Segments
Net interest income	$	48,181		$	5,977	$	(1,382	)	$	—		$	52,776
Provision for loan losses		43,116			626		—			—			43,742
Noninterest income		27,196			1,150		88			(631	)		27,803
Noninterest expense		72,577			3,326		2,110			(631	)		77,382
Income tax expense (benefit)		641			1,222		(889	)		—			974

Segment profit (loss)	$	(40,957	)	$	1,953	$	(2,515	)	$	—		$	(41,519	)

Segment assets	$	2,191,032		$	43,661	$	153,308		$	—		$	2,388,001


2010	Banking			Other Segments		Holding Company			Eliminations			Total Segments
Net interest income	$	77,246		$	8,327	$	(1,980	)	$	—		$	83,593
Provision for loan losses		69,568			1,539		—			—			71,107
Noninterest income		31,467			1,899		96			(918	)		32,544
Noninterest expense		105,088			4,643		2,002			(918	)		110,815
Income tax expense (benefit)		14,068			1,585		(743	)		—			14,910

Segment profit (loss)	$	(80,011	)	$	2,459	$	(3,143	)	$	—		$	(80,695	)

Segment assets	$	2,356,543		$	42,995	$	6,502		$	—		$	2,406,040


2009	Banking			Other Segments		Holding Company			Eliminations			Total Segments
Net interest income	$	74,628		$	8,474	$	(2,577	)	$	—		$	80,525
Provision for loan losses		47,483			2,763		—			—			50,246
Noninterest income		30,258			2,127		180			(987	)		31,578
Noninterest expense		223,989			4,868		1,717			(987	)		229,587
Income tax expense (benefit)		(16,712	)		1,164		(1,488	)		—			(17,036	)

Segment profit (loss)	$	(149,874	)	$	1,806	$	(2,626	)	$	—		$	(150,694	)

Segment assets	$	2,568,926		$	42,251	$	7,962		$	—		$	2,619,139

Asset Quality Ratios


As of and for the period ended December 31, 2010	Bank			Other			Total
Nonperforming loans as percentage of total loans, net of unearned income		8.40	%		1.30	%		8.35	%
Nonperforming assets as a percentage of total assets		8.52	%		1.34	%		8.56	%
Allowance for loan losses as a percentage of total loans, net of unearned income		3.68	%		7.33	%		3.83	%
Allowance for loan losses as a percentage of nonperforming loans		43.80	%		562.24	%		45.83	%
Net charge-offs to average total loans, net of unearned income		2.76	%		4.20	%		2.84	%


As of and for the period ended December 31, 2009	Bank			Other			Total
Nonperforming loans as percentage of total loans, net of unearned income		3.69	%		1.50	%		3.70	%
Nonperforming assets as a percentage of total assets		5.04	%		2.02	%		5.07	%
Allowance for loan losses as a percentage of total loans, net of unearned income		2.30	%		8.05	%		2.45	%
Allowance for loan losses as a percentage of nonperforming loans		62.29	%		538.31	%		66.39	%
Net charge-offs to average total loans, net of unearned income		2.15	%		5.88	%		2.25	%

GREEN BANKSHARES, INC. 10-K