Greer Bancshares Incorporated, the parent company of Greer State Bank, today reported an annual net income attributable to common shareholders of $8,209,000 or $3.30 per diluted common share as compared to the prior year net income of $4,186,000 or $1.68 per diluted common share. The current year was aided significantly by a credit to the loan loss provision for $1,700,000, as well as a net tax benefit of $3,801,000. The net tax benefit was a result of $1,890,000 in taxes being offset by a non-cash reversal of the deferred tax asset valuation allowance of $5,691,000. The non-cash reversal of the loan loss provision was reflective of a reduced loan portfolio size and improved loan portfolio credit quality metrics. The non-cash reversal of the deferred tax asset valuation allowance was reflective of sustained profitability and improved earnings that support the ability to utilize the deferred tax asset in the future.
“We continue to see strength in our earnings as we recognize our ninth consecutive quarter of profitable performance,” commented George Burdette, President and CEO of Greer State Bank. “The 2013 market gave us opportunities to continue our positive momentum and we expect that trend to continue in 2014.”
The company also reported that current trends in the Bank’s past dues and non-accrual loans continue to improve. Non-accrual loans decreased to $2.6 million, down from $3.9 million at December 31, 2012; and past-due loans were $1.6 million, down from $2.9 million at December 31, 2012.
As of December 31, 2013:
• Total assets were $359 million, a decrease of .5% from $361 million at December 31, 2012;
• Total loans outstanding were $187 million, down from $196 million at December 31, 2012; and
• Total deposits were $253 million, a decrease from $261 million at December 31, 2012.
“Our commitment to serve the banking needs of our local customers with outstanding financial solutions and customer care will remain a priority as a community bank,” Burdette continued. “We are pleased to have been a part of the Greer area growth and success for over 25 years.”
About Greer State Bank
Now in its twenty-sixth year of operations, Greer State Bank serves the greater Greer community with three branch offices and a fourth branch office in the Taylors community. Greer Bancshares Incorporated trades in the over the counter market and is quoted on the OTC Bulletin Board under the symbol GRBS.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements relate to, among other things, future economic performance, plans and objectives of management for future operations, and projections of revenues and other financial items that are based on the beliefs of management, as well as assumptions made by, and information currently available to, management. The words “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “may,” and “intend,” as well as other similar words and expressions, are intended to identify forward-looking statements. Actual results may differ materially from the results discussed in the forward-looking statements. The Company’s operating performance is subject to various risks and uncertainties. For a description of factors which may cause actual results to differ materially from such forward-looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and other reports from time to time filed with or furnished to the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made. The Company undertakes no obligation to update any forward-looking statements made in this report.