Houston-based GreenBancorp Inc. has created a strategic initiative designed tosubstantially reduce the uncertainty in the financial results caused by itsenergy loan portfolio, according to an April 28 earnings release.
The initiative dubbed Managed Asset Reduction Strategy aimsto remove what the company called "temporary roadblock" to theexecution of its growth plan due largely to the energy market. Eight workout professionalswill focus solely on the resolution of the MARS portfolio. They will report tothe company's corporate chief credit officer.
"[O]ur results are clearly being impacted by thechallenging energy cycle and the duress that it is causing throughout the oilpatch," Chairman and CEO Manny Mehos said. "As a result, we have madethe decision to more aggressively remove this uncertainty. We have determinedthat the prudent course of action is to exit the energy lending business."
The company said that first-quarter net income was $1.8million, compared to the year-ago period's $4.6 million. Net income per dilutedcommon share was 5 cents for the quarter ended March 31, compared to 18 centsfor the first quarter of 2015.
For the first quarter, net charge offs were $9.2 million,primarily related to an energy production loan, compared to net loan recoveriesof $432,000 for the same quarter a year ago.