Sustainable in Every Way
Green Bank focuses on sustainability from a financial and environmental perspective. As many depositors scrutinize their banks performance and loan portfolios, our customer base continues to grow. CFO John Durie provides insight into the health of Green Bank and its capital ratio that is more than three times the standard for “well capitalized” banks. Find out how Green Bank is as sustainable financially as it is for the environment… Green Bank—Sustainable in Every Way
Overview of the Safety and Soundness of Deposits
By John Durie
CFO, Green Bank
The last nine months have been difficult for the banking and finance industry. With nearly 2.5 million homeowners in foreclosure and analysts predicting that we’re only 60 percent through the housing crisis, many consumers are left wondering if their institution will soon be in the news.
The headlines often highlight the worst parts of the news. In reality, only a small portion of banks made truly crippling lending mistakes. Indeed, many will have write-offs, but their doors will remain open.
Green Bank focuses on sustainability from a financial and environmental perspective. We choose the right path and work towards long-term goals, from our lending and investing practices, preferential usage of local service providers, a commitment to reducing to recycling waste. These commitments are paying off as depositors and borrowers choose Green Bank and our successes grow.
Many depositors are scrutinizing their banks performance and loan portfolio. To help investors and depositors understand the position of Green Bank, we boldly offer the following:
• Green Bank’s capital ratio is over three times the regulatory minimum. As of June 30, 2008, the bank reported total assets of $286.0 million and total capital of $56.1 million with tangible equity capital of $47.9 million. Green Bank, N.A. reported a Tier 1 Leverage Capital Ratio (Tier 1 Capital to average total assets for leverage capital purposes) of 18.23% as of June 30, 2008 pursuant to regulatory guidelines for filing Consolidated Reports of Condition and Income. The minimum Tier 1 Leverage Capital Ratio to be considered “well capitalized” under the prompt corrective action provisions of applicable regulatory guidelines is 5.0%.
• The bank has no exposure to collateralized debt obligations, subprime mortgage loans or similar high-risk assets. The bank’s loan portfolio is high quality with no reported troubled loans as of June 30, 2008. Loan losses have been negligible throughout the history of the bank and an adequate reserve for possible loan losses is in place.
• The bank’s investment portfolio contains high quality AAA rated securities issued by government-sponsored entities. Mortgage backed securities have been thoroughly evaluated–none are backed by subprime mortgages.
• Green Bank, N.A. is a federally chartered bank regulated by the Office of the Comptroller of the Currency, a division of the Department of the Treasury of the United States. Public filings with regulatory agencies can be accessed at www. fdic.gov. Green Bank’s FDIC Certificate Number is 35007 and OCC Charter Number is 24749.
Deposits at Green Bank are insured by the FDIC up to a maximum limit of generally $100,000 per depositor. Depositors can create multiple party accounts to expand the insurability of total deposits. If you have any questions about FDIC insurance or ways to minimize risk, contact your Green Bank banker or Mary Doyal, mdoyal [at] greenbank [dot] com or (713) 316-3677.
Questions regarding the financial condition of Green Bank can be directed to John Durie, jdurie [at] greenbank [dot] com.