Green Bancorp Chief Executive Geoff Greenwade, eager to tamp down speculation of a potential sale, stressed during a conference presentation that the Houston company plans to remain independent.
Greenwade's comments, made at conference hosted by RBC Capital Markets, were made just days after
"Any articles on us last week are out of left field," Greenwade said, blasting recent coverage as "rumors" and "gossip."
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There is a growing belief that reserves for energy loans should represent 5% of a bank's exposure to the sector. Three banks have already announced plans to move in that direction, prompting speculation as to which other lenders will be next.
January 13 -
Hancock Holding's decision to significantly raise its allowance for energy loan losses reveals that oil-related issues could last longer and cut deeper than what bankers had originally forecast.
December 18
Green, instead, plans to remain a buyer in the coming months. The company, which bought the $1.4 billion-asset Patriot Bank in October, plans to announce another deal by the end of the year, Greenwade said.
Like many smaller banks along the Gulf Coast, Green has taken hits in its energy portfolio. Oil and gas loans account for about 9% of Green's total portfolio.
During the
Still, Greenwade insisted that recent media coverage – of both oil lending and Green's M&A plans — has exaggerated the challenges his company faces.
"The problem with journalists is that they've just got to sell some newspapers or magazines," he said.
