Green Bankshares Inc. of Greenville, Tenn., said Friday that its second-quarter earnings fell 79% from a year earlier, to $1.5 million, as a result of a sharp increase in nonperforming residential construction and land development loans.
Earnings per share fell 82%, to 11 cents. The $3 billion-asset company said the loan deterioration began late in the second quarter and that it took aggressive action.
Its loan-loss provision increased more than elevenfold from the previous quarter, to $11 million, as nonperforming loans rose 35%, to $40.4 million.
Green said it charged off $9.6 million in loans for the second quarter, or 0.41% of its total, and wrote down $1.2 million on its other real estate owned.
The company's shares were down 10% by late Friday, to $13.25.
