Green Bancorp, Inc. Reports First Quarter 2017 Financial Results

Green Bancorp, Inc. Reports First Quarter 2017 Financial Results

2017 First Quarter Highlights

  o First quarter 2017 net income totaled $7.2 million, or $0.19 per diluted
    common share
  o Return on average assets was 0.73% for Q1 2017, an increase from 0.25% in
    Q4 2016, and pre-tax pre-provision return on average assets was 1.75% for
    Q1 2017, an increase from 1.36% in Q4 2016
  o Efficiency ratio of 54.64% for Q1 2017, an improvement of 10.4% from Q4
    2016
  o Nonperforming assets were reduced by $18.7 million, or 17.7%, during Q1
    2017
  o Total deposits increased $41.4 million in Q1 2017, with the growth
    bringing noninterest-bearing deposits to 20.7% of total deposits
  o Tangible book value per common share increased to $9.25

HOUSTON, April 27, 2017 (GLOBE NEWSWIRE) -- Green Bancorp, Inc. (NASDAQ:GNBC),
the bank  holding company  (“Green Bancorp”  or the  “Company”) that  operates 
Green Bank, N.A. (“Green Bank”), today announced results for its first quarter
ended March 31, 2017.   The Company  reported net  income for  the quarter  of 
$7.2 million, or $0.19 per diluted common share.

Manny Mehos, Chairman and Chief Executive Officer of Green Bancorp, said, "The
MARS initiative is behind us and we can now turn our focus to growing the
earnings power of the bank, clear signs of which can be seen in our first
quarter results.  Our credit quality showed strong improvement in the quarter,
provision expense is quickly returning to more normalized levels, and we are
poised to return to loan growth through the remainder of the year. We are
finally back to the business of banking.”

Geoff Greenwade, President of Green Bancorp and Chief Executive Officer of
Green Bank, commented, “I am very pleased with our first quarter results and
the outlook for the balance of 2017.  The Houston economy has weathered the
oil downturn well, while the Dallas economy has remained robust and is a focus
for growth as we look to balance our business between these two major
markets.  Additionally, we have had strong success growing our noninterest
income which has been a priority of the bank.”

Results of Operations  - Quarter  Ended March 31, 2017  compared with  Quarter 
Ended December 31, 2016

Net income for the quarter ended March 31, 2017 was $7.2 million, an  increase 
of $4.7 million, or 183.5%, compared  with $2.5 million for the quarter  ended 
December 31,  2016. Net  income per  diluted common  share was  $0.19 for  the 
quarter ended March 31, 2017,  compared with $0.07 for  the fourth quarter  of 
2016. Returns  on  average  assets  and average  common  equity,  each  on  an 
annualized basis, for  the three months  ended March 31, 2017  were 0.73%  and 
6.71%,  respectively.  Green  Bancorp’s  efficiency  ratio,  which  represents 
noninterest expense divided by the sum of net interest income and  noninterest 
income, was 54.64%  for the three  months ended March 31,  2017.  The  Company 
recorded  a  provision  for  loan  losses  of  $6.1 million,  which   included 
$6.0 million in reserves on the energy portfolio.

Net interest income  before provision for  loan losses for  the quarter  ended 
March 31, 2017 increased  1.4%, or $459 thousand,  to $32.6 million,  compared 
with $32.2 million for the quarter  ended December 31, 2016.  The increase  in 
net interest  income was  primarily due  to  the full  quarter impact  of  the 
December 2016  rate increase,  an  increase of  $1.4  million, or  124.4%,  in 
interest earned on securities due to  a $255.7 million, or 80.8%, increase  in 
the average balance and a  0.38% increase in the  average yield, offset by  an 
increase of $585 thousand in  interest expense on subordinated debentures  and 
notes due to the full  quarter of expense for the  debt issued on December  8, 
2016 and two fewer days  in the quarter ended March  31, 2017 compared to  the 
quarter ended December  31, 2016.   The  net interest margin  for the  quarter 
ended March 31,  2017 of  3.47% increased  from 3.40%  for the  quarter  ended 
December 31, 2016.  The  improvement in  net interest  margin was  due to  the 
factors discussed above.

Noninterest income for the quarter ended  March 31, 2017 was $5.5 million,  an 
increase of $3.3 million, or 153.5%,  from $2.2 million for the quarter  ended 
December 31, 2016.  The increase was primarily due to a $1.5 million  increase 
in gain on sale of guaranteed portion of loans due to timing of loan sales,  a 
$1.3 million  decrease  in  loss  on  sale  of  held  for  sale  loans  and  a 
$511 thousand increase in  customer service  fees due to  continued growth  in 
treasury management service fees.

Noninterest expense for the quarter ended March 31, 2017 was $20.8 million,  a 
decrease of $114 thousand, or 0.5%,  from $21.0 million for the quarter  ended 
December 31,  2016.   The  decrease  was  primarily  due  to  a  decrease   in 
loan-related expenses  of $864 thousand  and  a decrease  in ORE  expenses  of 
$90 thousand due  to  the reduction  in  nonperforming assets,  offset  by  an 
increase in salaries and employee benefits.

The pre-tax earnings impact in the quarter ended March 31, 2017 related to the
managed  asset  reduction  strategies  was  $560 thousand,  which  included  a 
$138 thousand loss on the sale of energy loans held for sale and $422 thousand
in expenses related to ORE and legal, administrative and other loan expenses. 
This amount is reduced from $2.9 million during the quarter ended December 31,
2016, which included a $1.4 million loss on the sale of energy loans held  for 
sale and $1.5 million in loan and ORE expenses.

Loans held for investment at March 31,  2017 were $3.0 billion, a decrease  of 
$85.9 million, or 2.8%, when compared with December 31, 2016 and average loans
held for investment decreased $27.7 million, or 0.9%, from the prior  period.  
The decrease is  primarily due  to a $47.8 million  decrease in  construction, 
land and land  development loans, a  $19.1 million decrease  in energy  loans, 
$16.8 million in reductions of mortgage warehouse balances and a $14.7 million
reduction in commercial real estate loans.  During the first quarter of  2017, 
the Company  resolved $25.7 million  in energy-related  loans, which  included 
$6.6 million in loans held for sale.  At March 31, 2017, energy loans  totaled 
$76.3 million, or 2.5% of total loans, excluding loans held for sale.

Loans held  for sale  at  March 31, 2017  were  $17.4 million, a  decrease  of 
$6.6 million, or 27.7%, compared with $24.0 million at December 31, 2016.  The
loans held for sale are energy loans and the reduction from the prior  quarter 
is due to sales during the quarter ended March 31, 2017.

During the quarter ended March 31, 2017, securities increased $279.3 million,
or 90.1%, due to the purchase of $298.4 million in securities, which utilized
excess cash.  Premises and equipment increased $4.9 million, or 19.2%,
primarily due to the March 2017 receipt of title by Green Bank for an office
building that is being held for future use as an operations center.

Deposits at March 31, 2017 were $3.4 billion, an increase of $41.4 million, or
1.2%, compared with December 31, 2016, comprised of increases of $55.4 million
in  noninterest-bearing  deposits  and   $45.8  million  in   interest-bearing 
transaction and savings deposits, offset by  a $59.8 million decrease in  time 
deposits.  Average deposits increased $2.3  million, or 0.1%, for the  quarter 
ended March 31, 2017, compared with the prior quarter.

Asset Quality  - Quarter  Ended  March 31, 2017  compared with  Quarter  Ended 
December 31, 2016

Nonperforming assets  totaled $87.5  million,  or 2.15%  of period  end  total 
assets,  at  March  31,  2017,   a  decrease  of  $18.8 million  compared   to 
$106.3 million, or 2.64%  of period  end total assets,  at December 31,  2016, 
primarily due to the  resolution of $7.3 million  in nonaccrual loans and  the 
sale of $6.6 million  in nonperforming energy loans  held for sale.   Accruing 
loans  classified  as   troubled  debt  restructures   and  included  in   the 
nonperforming asset totals were $11.1 million at March 31, 2017, compared with
$16.5 million at December 31, 2016.  Real estate acquired through  foreclosure 
totaled $1.4 million at March 31, 2017, a decrease of $3.9 million, or  74.0%, 
compared with December 31, 2016.

The allowance for  loan losses  was 1.06% of  total loans  at March 31,  2017, 
compared with 0.85% of total loans at December 31, 2016.  The increase in  the 
allowance for loan losses as a percentage of total loans when compared to  the 
prior period  was  due  primarily  to a  $6.3  million  increase  in  specific 
reserves, primarily related to the  remaining energy portfolio.  At  March 31, 
2017, the  Company’s allowance  for  loans losses  to total  loans,  excluding 
acquired loans that  are accounted  for under ASC  310-20 and  ASC 310-30  and 
their related allowance, was  1.28%.  Further, the  allowance for loan  losses 
plus acquired loan net discount to total loans adjusted for acquired loan  net 
discount was 1.30% as of March 31, 2017.

The Company  recorded a  provision for  loan losses  of $6.1 million  for  the 
quarter ended March 31, 2017 down from the $9.5 million provision for the loan
losses recorded for the quarter ended December 31, 2016.  The first quarter of
2017 provision includes $6.0 million in  reserves related to energy loans,  as 
compared to  the  fourth  quarter, which  included  $8.6 million  in  reserves 
related to energy loans.

Net charge-offs were $573 thousand, or 0.02%  of total loans, for the  quarter 
ended March 31, 2017, compared with net charge-offs of $19.0 million, or 0.63%
of total  loans,  for the  quarter  ended December 31,  2016,  which  included 
$16.4 million in partial charge-offs related to energy loans.

Results of operations  - Quarter  Ended March 31, 2017  compared with  Quarter 
Ended March 31, 2016

Net income for  the quarter  ended March 31, 2017  was $7.2 million,  compared 
with net income of $1.8 million  for the same period  in 2016. Net income  per 
diluted common share was $0.19 for the quarter ended March 31, 2017,  compared 
with net income per diluted common share of $0.05 for the same period in 2016.
 The Company  recorded a  provision  for loan  losses of  $6.1 million,  which 
includes $6.0 million  in reserves  on the  energy portfolio.   The  provision 
decreased $9.9 million from the same period in 2016.

Net interest income  before provision for  loan losses for  the quarter  ended 
March 31, 2017  was  $32.6 million,  a  decrease  of  $1.6 million,  or  4.6%, 
compared with $34.2 million during the same period in 2016.  The decrease  was 
primarily due to an increase in interest expense on deposits of $1.7  million, 
or 42.7%, a $974 thousand, or 2.6%, decrease in the interest earned on  loans, 
and an $804 thousand increase in expense on subordinated notes and debentures,
offset by a $1.5 million increase  in interest income on securities.  The  net 
interest margin for the quarter ended March 31, 2017 was 3.47%, compared  with 
3.87% for the same period in 2016.

Noninterest income for the quarter  ended March 31, 2017 was $5.5 million,  an 
increase of $1.3 million, or  32.3%, compared with  $4.2 million for the  same 
period in 2016.  This increase was primarily due to an $862 thousand  increase 
in customer  service fees  and a  $789 thousand increase  in gain  on sale  of 
guaranteed portion of loans, offset  by a $179 thousand decrease in  gain/loss 
on sale of held for sale loans.  

Noninterest expense for the quarter ended March 31, 2017 was $20.8 million, an
increase of $1.4 million, or  6.9%, compared with  $19.5 million for the  same 
period in 2016.  The increase was primarily due to a $475 thousand increase in
professional and regulatory  fees, a  $427 thousand increase  in salaries  and 
employee benefits and a $357 thousand increase in loan-related expenses.

Loans held for investment at March 31,  2017 were $3.0 billion, a decrease  of 
$155.9 million,  or  4.9%,  compared  with  $3.2 billion  at  March 31,  2016, 
primarily due to  the resolution  of nonperforming  loans offset  by new  loan 
production.    Average loans held  for investment decreased $110.7 million  to 
$3.0 billion for the quarter ended March 31, 2017, compared with  $3.1 billion 
for the same period in 2016.  

Loans held for sale at March 31, 2017 were $17.4 million, comprised of  energy 
loans transferred to held for sale during 2016.

Total  energy  loans  have  been   reduced  to  $93.7 million,  comprised   of 
$76.3 million in loans held for investment and $17.4 million in loans held for
sale, at March 31, 2017 from $292.6 million at December 31, 2015.

Deposits at March 31, 2017 were  $3.4 billion, an increase of  $359.1 million, 
or  11.7%,  compared   with  March 31,  2016,   primarily  due  to   continued 
opportunities for our portfolio bankers to generate deposit growth within  our 
target markets.   Average  deposits  increased 11.2%,  or  $338.4 million,  to 
$3.4 billion for  the quarter  ended March 31,  2017, compared  with the  same 
period of 2016.  Average noninterest-bearing  deposits for  the quarter  ended 
March 31, 2017 were  $644.2 million, an  increase of  $40.0 million, or  6.6%, 
compared with the same period in 2016.

Asset Quality  - Quarter  Ended  March 31, 2017  compared with  Quarter  Ended 
March 31, 2016

Nonperforming assets  totaled  $87.5 million, or  2.15%  of period  end  total 
assets,  at  March 31,  2017,  an   increase  of  $10.0 million  compared   to 
$77.5 million, or 2.01% of  period end total assets,  at March 31, 2016.   The 
increase was primarily due to energy-related loan migration to  nonperforming, 
the nonperforming loans that were acquired through the Patriot acquisition and
subsequent migration in the acquired portfolio.  Accruing loans classified  as 
troubled debt restructures and included in the nonperforming asset totals were
$11.1 million at  March 31,  2017,  compared with  $5.6 million  at  March 31, 
2016.  Real  estate  acquired  through  foreclosure  totaled  $1.4 million  at 
March 31, 2017, a decrease of $7.9 million, or 85.3%, compared with  March 31, 
2016.

The allowance for  loan losses  was 1.06% of  total loans  at March 31,  2017, 
compared with 1.25%  of total loans  at March 31, 2016.   The decrease in  the 
allowance for loan losses  as a percentage of  total loans when compared  with 
March 31, 2016 was  due primarily  to a decrease  in specific  reserves, as  a 
result of charge-offs in the energy portfolio. 

The Company  recorded a  provision for  loan losses  of $6.1 million  for  the 
quarter ended March 31, 2017  down from the  $16.0 million provision for  loan 
losses recorded for the quarter ended March 31, 2016.

Net charge-offs  were  $573 thousand for  the  quarter ended  March 31,  2017, 
compared with net charge-offs of $9.2 million for the quarter ended  March 31, 
2016, which was primarily due to charge-offs related to energy loans.

Non-GAAP Financial Measures

Green  Bancorp’s  management   uses  certain   non−GAAP  (generally   accepted 
accounting  principles)  financial  measures  to  evaluate  its   performance. 
 Specifically, Green Bancorp reviews tangible book value per common share, the
tangible common  equity  to  tangible  assets ratio,  the  return  on  average 
tangible common equity  ratio, allowance  for loan losses  less allowance  for 
loan losses  on  acquired  loans  to total  loans  excluding  acquired  loans, 
allowance for loan  losses plus  acquired loans  net discount  to total  loans 
adjusted for acquired loan net discount, and pre-tax, pre-provision return  on 
average  assets.   Green  Bancorp  has  included  in  this  Earnings   Release 
information related to  these non-GAAP financial  measures for the  applicable 
periods presented.  Please refer to the “Notes to Financial Highlights” at the
end of this Earnings Release for a reconciliation of these non-GAAP  financial 
measures.

Conference Call

As previously  announced, Green  Bancorp will  hold a  conference call  today, 
April 27,  2017,  to discuss  its  first quarter  2017  results at  5:00  p.m. 
(Eastern Time).  The conference  call can be accessed  live over the phone  by 
dialing 1-877-407-0789,  or  for  international  callers,  1-201-689-8562  and 
requesting to  be joined  to the  Green Bancorp  First Quarter  2017  Earnings 
Conference Call.  A replay  will be available starting  at 8:00 p.m.  (Eastern 
Time) on April 27, 2017 and can be accessed by dialing 1-844-512-2921, or  for 
international  callers,  1-412-317-6671.   The  passcode  for  the  replay  is 
13659233.  The replay will be available until 11:59 p.m. (Eastern Time) on May
4, 2017.

Interested investors  and other  parties  may also  listen to  a  simultaneous 
webcast of the conference call by logging onto the investor relations  section 
of the Company's website at  investors.greenbank.com.  The online replay  will 
remain available for a limited time beginning immediately following the call.

To learn  more about  Green Bancorp,  please visit  the Company's  website  at 
www.greenbank.com.   Green  Bancorp   uses  its  website   as  a  channel   of 
distribution for material Company  information.  Financial and other  material 
information regarding  Green  Bancorp is  routinely  posted on  the  Company's 
website and is readily accessible.

About Green Bancorp, Inc.

Headquartered in Houston, Texas, Green Bancorp is a bank holding company  that 
operates Green Bank in the Houston  and Dallas metropolitan areas and  Austin, 
Louisville and Honey  Grove.  Commercial-focused, Green  Bank is a  nationally 
chartered bank regulated by the Office  of the Comptroller of the Currency,  a 
division of the Department of the Treasury of the United States.

Forward Looking Statement

The information  presented  herein  and  in  other  documents  filed  with  or 
furnished to  the Securities  and Exchange  Commission (the  “SEC”), in  press 
releases or other  public shareholder  communications, or  in oral  statements 
made with the  approval of  an authorized executive  officer contains  forward 
looking statements within  the meaning  of the  Private Securities  Litigation 
Reform Act  of 1995  giving  Green Bancorp’s  expectations or  predictions  of 
future financial  or  business  performance  or  conditions.   Forward-looking 
statements are  typically identified  by words  such as  “believe,”  “expect,” 
“anticipate,”  “intend,”   “target,”  “estimate,”   “continue,”   “positions,” 
“prospects” or  “potential,”  by  future conditional  verbs  such  as  “will,” 
“would,” “should,” “could”  or “may”,  or by variations  of such  words or  by 
similar expressions.  These forward-looking statements are subject to numerous
assumptions, risks and uncertainties  which change over time.  Forward-looking 
statements speak only as of  the date they are made  and we assume no duty  to 
update forward-looking statements.

You  are  cautioned  not  to  place  undue  reliance  on  any  forward-looking 
statements, which speak only as of  the date such statements are made.   These 
statements may  relate to  future financial  performance, strategic  plans  or 
objectives, revenues or earnings projections, or other financial  information. 
 By their nature, these statements are subject to numerous uncertainties  that 
could cause actual results to differ materially from those anticipated in  the 
statements. Statements about  the expected timing,  completion and effects  of 
the proposed transactions and all other statements in this release other  than 
historical facts constitute forward-looking statements.

In addition to factors previously  disclosed in Green Bancorp’s reports  filed 
with the  SEC  and  those  identified elsewhere  in  this  communication,  the 
following  factors  among  others,  could  cause  actual  results  to   differ 
materially  from  forward-looking  statements:  difficulties  and  delays   in 
integrating the Green Bancorp and  Patriot businesses or fully realizing  cost 
savings and other benefits; business disruption following the merger;  changes 
in asset  quality  and credit  risk;  the  inability to  sustain  revenue  and 
earnings growth; changes  in interest  rates and  capital markets;  inflation; 
customer borrowing,  repayment,  investment and  deposit  practices;  customer 
disintermediation;  the  introduction,  withdrawal,  success  and  timing   of 
business initiatives; competitive  conditions; the inability  to realize  cost 
savings or revenues or to  implement integration plans and other  consequences 
associated with mergers, acquisitions  and divestitures; economic  conditions; 
and the impact, extent and timing of technological changes, capital management
activities, and other actions of the Federal Reserve Board and legislative and
regulatory actions and reforms.

Annualized,  pro  forma,  projected  and   estimated  numbers  are  used   for 
illustrative purpose  only,  are not  forecasts  and may  not  reflect  actual 
results.

                                                                                             
                      Mar 31, 2017     Dec 31, 2016     Sep 30, 2016     Jun 30, 2016     Mar 31, 2016
                                                                                                        
                      (Dollars in thousands)
Period End Balance                                                                           
Sheet Data:
Cash and cash         $  255,581       $  389,007       $  313,366       $  199,950       $  171,421    
equivalents
Securities               589,468          310,124          318,289          237,029          302,838    
Other investments        19,057           18,649           18,621           18,586           24,744     
Loans held for sale      17,350           23,989           38,934           6,253            -          
Loans held for           3,012,275        3,098,220        3,047,618        3,189,436        3,168,183  
investment
Allowance for loan       (31,936   )      (26,364   )      (35,911   )      (47,420   )      (39,714   )
losses
Goodwill                 85,291           85,291           85,291           85,291           85,291     
Core deposit             9,595            9,975            10,356           10,758           11,160     
intangibles, net
Real estate
acquired through         1,356            5,220            2,801            6,216            9,230      
foreclosure
Premises and             30,604           25,674           26,164           26,706           27,252     
equipment, net
Other assets             83,359           85,037           104,307          94,642           89,004     
Total assets          $  4,072,000     $  4,024,822     $  3,929,836     $  3,827,447     $  3,849,409  
                                                                                             
Noninterest-bearing   $  705,480       $  650,064       $  618,408       $  583,347       $  592,690    
deposits
Interest-bearing
transaction and          1,404,988        1,359,187        1,304,547        1,208,960        1,069,931  
savings deposits
Certificates and         1,305,670        1,365,449        1,392,944        1,414,954        1,394,398  
other time deposits
Total deposits           3,416,138        3,374,700        3,315,899        3,207,261        3,057,019  
Securities sold
under agreements to      4,316            3,493            2,855            3,227            3,544      
repurchase
Other borrowed           150,000          150,000          150,000          150,000          328,968    
funds
Subordinated
debentures and           47,304           47,492           13,502           13,397           13,292     
subordinated notes
Other liabilities        16,954           18,655           21,365           18,621           15,676     
Total liabilities        3,634,712        3,594,340        3,503,621        3,392,506        3,418,499  
Shareholders'            437,288          430,482          426,215          434,941          430,910    
equity
Total liabilities     $  4,072,000     $  4,024,822     $  3,929,836     $  3,827,447     $  3,849,409  
and equity

                                                                         
               For the Quarter Ended
               Mar 31,       Dec 31,       Sep 30,        Jun 30,     Mar 31,
               2017          2016          2016           2016        2016
                                                                         
               (Dollars in thousands)
Income
Statement                                                                
Data:
Interest                                                                 
income:
Loans,
including      $  36,371     $  36,469     $  37,897      $  37,711   $  37,345
fees
Securities        2,583         1,151         989            988         1,081
Other             188           184           199            205         173
investments
Federal           1             -             1              1           1
funds sold
Deposits in
financial         408           522           346            157         124
institutions
Total
interest          39,551        38,326        39,432         39,062      38,724
income
                                                                         
Interest                                                                 
expense:
Transaction
and savings       1,978         1,750         1,537          1,312       1,150
deposits
Certificates
and other         3,607         3,766         3,791          3,702       2,763
time
deposits
Subordinated
debentures
and               1,041         456           246            243         237
subordinated
notes
Other
borrowed          282           170           183            264         346
funds
Total
interest          6,908         6,142         5,757          5,521       4,496
expense
                                                                         
Net interest      32,643        32,184        33,675         33,541      34,228
income
Provision
for loan          6,145         9,500         28,200         11,000      16,000
losses
Net interest
income after
provision         26,498        22,684        5,475          22,541      18,228
for loan
losses
                                                                         
Noninterest                                                              
income:
Customer          2,266         1,755         1,523          1,447       1,404
service fees
Loan fees         834           750           806            719         699
Gain (loss)
on sale of
held for          (138   )      (1,445 )      -              -           41
sale loans,
net
Gain on sale
of
guaranteed        1,927         379           968            858         1,138
portion of
loans, net
Other             606           729           794            758         873
Total
noninterest       5,495         2,168         4,091          3,782       4,155
income
                                                                         
Noninterest                                                              
expense:
Salaries and
employee          12,406        11,804        11,925         11,461      11,979
benefits
Occupancy         1,997         2,060         2,194          2,035       2,030
Professional
and               2,397         2,421         2,180          2,435       1,922
regulatory
fees
Data              908           1,023         921            945         970
processing
Software
license and       489           571           580            528         476
maintenance
Marketing         199           232           283            301         298
Loan related      600           1,464         1,287          801         243
Real estate
acquired by       292           382           2,105          381         300
foreclosure,
net
Other             1,551         996           1,908          1,788       1,269
Total
noninterest       20,839        20,953        23,383         20,675      19,487
expense
                                                                         
Income
(loss)            11,154        3,899         (13,817 )      5,648       2,896
before
income taxes
Provision
(benefit)         3,942         1,355         (4,831  )      2,017       1,057
for income
taxes
Net income     $  7,212      $  2,544      $  (8,986  )   $  3,631    $  1,839
(loss)

                                                                              
                As of and For the Quarter Ended                               
                Mar 31,     Dec 31,     Sep 30,        Jun 30,     Mar 31,    
                2017        2016        2016           2016        2016
                                                                              
                (Dollars in thousands, except per share data)                 
Per Share
Data (Common                                                                  
Stock):
Basic
earnings        $  0.19     $  0.07     $  (0.25  )    $  0.10     $  0.05    
(loss) per
common share
Diluted
earnings           0.19        0.07        (0.25  )       0.10        0.05    
(loss) per
share
Book value
per common         11.81       11.64       11.62          11.88       11.77   
share
Tangible book
value per          9.25        9.06        9.01           9.25        9.14    
common share
^ (1)
                                                                              
Common Stock                                                                  
Data:
Shares
outstanding        37,015      36,988      36,683         36,620      36,610  
at period end
Weighted
average basic
shares             36,990      36,731      36,657         36,613      36,706  
outstanding
for the
period
Weighted
average
diluted
shares             37,238      36,937      36,657         36,613      36,709  
outstanding
for the
period
                                                                              
Selected
Performance                                                                   
Metrics:
Return on
average            0.73   %    0.25   %    (0.92  )%      0.38   %    0.20   %
assets^(2)
Pre-tax,
pre-provision
return on          1.75        1.36        1.49           1.74        1.99    
average
assets^(1)(2)
Return on
average            6.71        2.37        (8.23  )       3.35        1.68    
equity^(2)
Return on
average
tangible           8.88        3.38        (10.36 )       4.57        2.43    
common
equity^(1)(2)
Efficiency         54.64       60.99       61.92          55.39       50.77   
ratio
Loans to
deposits           88.18       91.81       91.91          99.44       103.64  
ratio
Noninterest
expense to         2.10        2.10        2.39           2.19        2.08    
average
assets^(2)
                                                                              
Green Bancorp
Capital                                                                       
Ratios:
Average
shareholders’                                         
equity to          10.8   %    10.8   %    11.2    %      11.4   %    11.7   %
average total
assets
Tier 1
capital to
average            9.1         9.1         9.1            9.6         9.5     
assets
(leverage)
Common equity
tier 1             10.0        9.7         9.5            9.5         9.4     
capital
Tier 1
capital to         10.4        10.1        9.8            9.8         9.7     
risk-weighted
assets
Total capital
to                 12.3        11.8        10.9           11.1        10.8    
risk-weighted
assets
Tangible
common equity      8.6         8.5         8.6            9.1         8.9     
to tangible
assets ^ (1)
                                                                              
Green Bank
Capital                                                                       
Ratios:
Tier 1
capital to
average            9.1    %    9.0    %    9.0     %      9.4    %    9.4    %
assets
(leverage)
Common equity
tier 1             10.4        10.0        9.7            9.6         9.5     
capital
Tier 1
capital to         10.4        10.0        9.7            9.6         9.5     
risk-weighted
assets
Total capital
to                 11.2        10.8        10.7           10.9        10.6    
risk-weighted
assets

^_______________________________________
(1) Refer to “Notes to Financial Highlights” at the end of this Earnings
Release for a reconciliation of this non-GAAP financial measure.
^(2) Annualized ratio.

                                                                                                                                              
                      For the Quarter Ended                                                                                                   
                      March 31, 2017                           December 31, 2016                        March 31, 2016                        
                      Average          Interest    Average     Average          Interest    Average     Average          Interest    Average
                      Outstanding      Earned/     Yield/      Outstanding      Earned/     Yield/      Outstanding      Earned/     Yield/   
                      Balance          Interest    Rate        Balance          Interest    Rate        Balance          Interest    Rate
                                       Paid                                     Paid                                     Paid
                                                                                                                                              
                      (Dollars in thousands)                                                                                                  
Assets                                                                                                                                        
Interest-Earning                                                                                                                              
Assets:
Loans                 $  3,035,146     $  36,371    4.86   %   $  3,077,242     $  36,469    4.71   %   $  3,124,711     $  37,345    4.81   %
Securities               571,875          2,583     1.83          316,223          1,151     1.45          312,861          1,081     1.39    
Other investments        18,908           188       4.03          18,627           184       3.93          22,498           173       3.09    
Federal funds sold       424              1         0.96          967              -         -             2,507            1         0.16    
Interest earning
deposits in              185,994          408       0.89          355,400          522       0.58          94,902           124       0.53    
financial
institutions
Total
interest-earning         3,812,347        39,551    4.21   %      3,768,459        38,326    4.05   %      3,557,479        38,724    4.38   %
assets
                                                                                                                                              
Allowance for loan       (27,669   )                              (34,994   )                              (33,080   )                        
losses
Noninterest-earning      232,066                                  240,779                                  245,025                            
assets
Total assets          $  4,016,744                             $  3,974,244                             $  3,769,424                          
                                                                                                                                              
Liabilities and
Shareholders’                                                                                                                                 
Equity
Interest-bearing                                                                                                                              
liabilities:
Interest-bearing
demand and savings    $  1,382,680     $  1,978     0.58   %   $  1,330,734     $  1,750     0.52   %   $  1,066,999     $  1,150     0.43   %
deposits
Certificates and         1,325,329        3,607     1.10          1,382,930        3,766     1.08          1,342,562        2,763     0.83    
other time deposits
Securities sold
under agreements to      3,494            1         0.12          3,469            -         -             4,121            2         0.20    
repurchase
Other borrowed           160,778          281       0.71          150,000          170       0.45          280,838          344       0.49    
funds
Subordinated
debentures and           47,550           1,041     8.88          22,400           456       8.10          13,244           237       7.20    
subordinated notes
Total
interest-bearing         2,919,831        6,908     0.96   %      2,889,533        6,142     0.85   %      2,707,764        4,496     0.67   %
liabilities
                                                                                                                                              
Noninterest-bearing                                                                                                                           
liabilities:
Noninterest-bearing      644,212                                  636,218                                  604,261                            
demand deposits
Other liabilities        17,006                                   20,943                                   16,654                             
Total liabilities        3,581,049                                3,546,694                                3,328,679                          
Shareholders’            435,695                                  427,550                                  440,745                            
equity
Total liabilities
and  shareholders’    $  4,016,744                             $  3,974,244                             $  3,769,424                          
equity
                                                                                                                                              
Net interest rate                                   3.25   %                                 3.20   %                                 3.71   %
spread 
Net interest income                    $  32,643    3.47   %                    $  32,184    3.40   %                    $  34,228    3.87   %
and margin^(1)

^_______________________________________
(1) Net interest margin is equal to net interest income divided by
interest-earning assets.

Yield Trend

                                                                              
                             For the Quarter Ended                            
                             Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,  
                             2017      2016      2016      2016      2016
                                                                              
Average yield on                                                              
interest-earning assets:
Loans, including fees         4.86   %  4.71   %  4.77   %  4.76   %  4.81   %
Securities                    1.83      1.45      1.58      1.49      1.39    
Other investments             4.03      3.93      4.26      3.36      3.09    
Federal funds sold            0.96      -         0.51      0.34      0.16    
Interest-earning deposits     0.89      0.58      0.51      0.52      0.53    
in financial institutions
Total interest-earning        4.21   %  4.05   %  4.24   %  4.36   %  4.38   %
assets
                                                                              
Average rate on
interest-bearing                                                              
liabilities:
Interest bearing              0.58   %  0.52   %  0.49   %  0.46   %  0.43   %
transaction and savings
Certificates and other        1.10      1.08      1.07      1.05      0.83    
time deposits
Other borrowed funds          0.70      0.44      0.48      0.63      0.49    
Subordinated debentures       8.88      8.10      7.28      7.32      7.20    
Total interest-bearing        0.96   %  0.85   %  0.81   %  0.80   %  0.67   %
liabilities
                                                                              
Net interest rate spread      3.25   %  3.20   %  3.43   %  3.56   %  3.71   %
Net interest margin ^ (1)     3.47   %  3.40   %  3.62   %  3.74   %  3.87   %

^_______________________________________
(1) Net interest margin is equal to net interest income divided by
interest-earning assets.

Supplemental Yield Trend

                                                                              
                             For the Quarter Ended                            
                             Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,  
                             2017      2016      2016      2016      2016
                                                                              
Average yield on loans,       4.42   %  4.29   %  4.20   %  4.29   %  4.29   %
excluding fees ^(2)
Average cost of               0.84      0.81      0.80      0.78      0.65    
interest-bearing deposits
Average cost of total
deposits, including           0.68      0.66      0.65      0.64      0.52    
noninterest-bearing

^_______________________________________
(2) Average yield on loans, excluding fees, is equal to loan interest income
divided by average loan principal.

Portfolio Composition

                                                                                                                                                     
                      Mar 31, 2017              Dec 31, 2016              Sep 30, 2016              Jun 30, 2016              Mar 31, 2016           
                                                                                                                                                     
                      (Dollars in thousands)                                                                                                         
Period End Balances                                                                                                                                  
                                                                                                                                                     
Commercial &          $  1,012,982    33.6  %   $  1,053,925    34.0  %   $  1,004,414    33.0  %   $  1,128,541    35.4  %   $  1,130,710    35.7  %
industrial
Real Estate:                                                                                                                                         
Owner occupied           415,595      13.8         394,210      12.7         387,032      12.7         366,587      11.5         367,507      11.6   
commercial
Commercial               1,129,031    37.5         1,143,751    36.9         1,109,642    36.4         1,078,434    33.8         1,020,399    32.2   
Construction, land       201,946      6.7          249,704      8.1          278,323      9.1          334,925      10.5         356,207      11.2   
& land development
Residential              241,839      8.0          245,191      7.9          256,840      8.4          270,337      8.5          280,236      8.9    
mortgage
Consumer and Other       10,882       0.4          11,439       0.4          11,367       0.4          10,612       0.3          13,124       0.4    
Total loans held      $  3,012,275    100.0 %   $  3,098,220    100.0 %   $  3,047,618    100.0 %   $  3,189,436    100.0 %   $  3,168,183    100.0 %
for investment
                                                                                                                                                     
Deposits:                                                                                                                                            
Noninterest-bearing   $  705,480      20.7  %   $  650,064      19.3  %   $  618,408      18.6  %   $  583,347      18.2  %   $  592,690      19.4  %
Interest-bearing         208,213      6.1          168,994      5.0          171,457      5.2          164,584      5.1          178,470      5.8    
transaction
Money market             1,089,699    31.9         1,084,350    32.1         1,019,901    30.8         926,159      28.9         760,992      24.9   
Savings                  107,076      3.1          105,843      3.1          113,189      3.4          118,217      3.7          130,469      4.3    
Certificates and         1,305,670    38.2         1,365,449    40.5         1,392,944    42.0         1,414,954    44.1         1,394,398    45.6   
other time deposits
Total deposits        $  3,416,138    100.0 %   $  3,374,700    100.0 %   $  3,315,899    100.0 %   $  3,207,261    100.0 %   $  3,057,019    100.0 %
                                                                                                                                                     
Loan to Deposit          88.2      %               91.8      %               91.9      %               99.4      %               103.6     %         
Ratio

Asset Quality

                                                                                          
                   As of and for the Quarter Ended                                        
                   Mar 31,       Dec 31,        Sep 30,        Jun 30,       Mar 31,      
                   2017          2016           2016           2016          2016
                                                                                          
                   (Dollars in thousands)                                                 
Nonperforming                                                                             
Assets:
Nonaccrual loans   $  59,338     $  66,673      $  84,491      $  66,628     $  49,264    
Accruing loans
90 or more days       5,500         1,169          3,664          14,320        12,147    
past due
Restructured          10,276        10,133         8,961          853           1,270     
loans—nonaccrual
Restructured          11,068        16,518         5,378          5,469         5,616     
loans—accrual
Total
nonperforming         86,182        94,493         102,494        87,270        68,297    
loans
Nonperforming
loans held for        -             6,598          24,773         -             -         
sale
Real estate
acquired through      1,356         5,220          2,801          6,216         9,230     
foreclosure
Total
nonperforming      $  87,538     $  106,311     $  130,068     $  93,486     $  77,527    
assets
                                                                                          
Charge-offs:                                                                              
Commercial and     $  (1,312 )   $  (17,378 )   $  (37,789 )   $  (3,336 )   $  (9,880 )  
industrial
Owner occupied
commercial real       -             (250    )      (978    )      (177   )      -         
estate
Commercial real       -             -              (492    )      -             -         
estate
Construction,
land & land           (95    )      (1,631  )      -              -             -         
development
Residential           -             (30     )      (512    )      -             (6     )  
mortgage
Other consumer        (8     )      (15     )      (54     )      (37    )      (20    )  
Total                 (1,415 )      (19,304 )      (39,825 )      (3,550 )      (9,906 )  
charge-offs
                                                                                          
Recoveries:                                                                               
Commercial and     $  585        $  206         $  37          $  175        $  582       
industrial
Owner occupied
commercial real       4             -              17             -             -         
estate
Commercial real       -             -              -              -             -         
estate
Construction,
land & land           74            5              6              47            26        
development
Residential           57            33             45             20            57        
mortgage
Other consumer        122           13             11             14            8         
Total recoveries      842           257            116            256           673       
                                                                                          
Net
(charge-offs)      $  (573   )   $  (19,047 )   $  (39,709 )   $  (3,294 )   $  (9,233 )  
recoveries
                                                                                          
Allowance for
loan losses at     $  31,936     $  26,364      $  35,911      $  47,420     $  39,714    
end of period
                                                                                          
Asset Quality                                                                             
Ratios:
Nonperforming
assets to total       2.15     %    2.64      %    3.31      %    2.44     %    2.01     %
assets
Nonperforming
loans to total        2.86          3.05           3.36           2.74          2.16      
loans
Total classified
assets to total       38.00         39.09          54.12          49.03         50.93     
regulatory
capital
Allowance for
loan losses to        1.06          0.85           1.18           1.49          1.25      
total loans
Net charge-offs
(recoveries) to       0.02          0.63           1.26           0.10          0.30      
average loans
outstanding

We identify certain financial measures discussed in this release as being
“non‑GAAP financial measures.” In accordance with the SEC’s rules, we classify
a financial measure as being a non‑GAAP financial measure if that financial
measure excludes or includes amounts, or is subject to adjustments that have
the effect of excluding or including amounts, that are included or excluded,
as the case may be, in the most directly comparable measure calculated and
presented in accordance with generally accepted accounting principles as in
effect from time to time in the United States in our statements of income,
balance sheet or statements of cash flows. Non‑GAAP financial measures do not
include operating and other statistical measures or ratios or statistical
measures calculated using exclusively either financial measures calculated in
accordance with GAAP, operating measures or other measures that are not
non‑GAAP financial measures or both.

The non‑GAAP financial measures that we discuss in this release should not be
considered in isolation or as a substitute for the most directly comparable or
other financial measures calculated in accordance with GAAP. Moreover, the
manner in which we calculate the non‑GAAP financial measures that we discuss
in this release may differ from that of other companies reporting measures
with similar names. You should understand how such other banking organizations
calculate their financial measures similar or with names similar to the
non‑GAAP financial measures we have discussed in this release when comparing
such non‑GAAP financial measures.

Tangible Book Value Per Common Share.  Tangible book value is a non‑GAAP
measure generally used by financial analysts and investment bankers to
evaluate financial institutions. We calculate: (a) tangible common equity as
shareholders’ equity less goodwill and core deposit intangibles, net of
accumulated amortization; and (b) tangible book value per common share as
tangible common equity (as described in clause (a)) divided by shares of
common stock outstanding. For tangible book value, the most directly
comparable financial measure calculated in accordance with GAAP is our book
value.

We believe that this measure is important to many investors in the marketplace
who are interested in changes from period to period in book value per common
share exclusive of changes in intangible assets. Goodwill and other intangible
assets have the effect of increasing total book value while not increasing our
tangible book value.

The following table reconciles, as of the dates set forth below, total
shareholders’ equity to tangible common equity and presents our tangible book
value per common share compared with our book value per common share:

                                                                                
                Mar 31,      Dec 31,      Sep 30,      Jun 30,      Mar 31,     
                2017         2016         2016         2016         2016
                                                                                
                (Dollars in thousands, except per share data)
Tangible                                                                        
Common Equity
Total
shareholders’   $  437,288   $  430,482   $  426,215   $  434,941   $  430,910  
equity
Adjustments:                                                                    
Goodwill           85,291       85,291       85,291       85,291       85,291   
Core deposit       9,595        9,975        10,356       10,758       11,160   
intangibles
Tangible        $  342,402   $  335,216   $  330,568   $  338,892   $  334,459  
common equity
Common shares
outstanding        37,015       36,988       36,683       36,620       36,610   
^(1)
Book value
per common      $  11.81     $  11.64     $  11.62     $  11.88     $  11.77    
share ^(1)
Tangible book
value per       $  9.25      $  9.06      $  9.01      $  9.25      $  9.14     
common share
^(1)

^_______________________________________
(1) Excludes the dilutive effect of common stock issuable upon exercise of
outstanding stock options.  The number of exercisable options outstanding was
472,653 as of Mar 31, 2017; 493,241 as of Dec 31, 2016; 792,619 as of Sep 30,
2016; 785,352 as of Jun 30, 2016; and 874,466 as of Mar 31, 2016.

Tangible Common Equity to Tangible Assets.  Tangible common equity to tangible
assets is a non‑GAAP measure generally used by financial analysts and
investment bankers to evaluate financial institutions. We calculate: (a)
tangible common equity as shareholders’ equity less goodwill and core deposit
intangibles, net of accumulated amortization; (b) tangible assets as total
assets less goodwill and core deposit intangibles, net of accumulated
amortization; and (c) tangible common equity to tangible assets as tangible
common equity (as described in clause (a)) divided by tangible assets (as
described in clause (b)). For common equity to tangible assets, the most
directly comparable financial measure calculated in accordance with GAAP is
total shareholders’ equity to total assets.

We believe that this measure is important to many investors in the marketplace
who are interested in the relative changes from period to period in common
equity and total assets, each exclusive of changes in intangible assets.
Goodwill and other intangible assets have the effect of increasing both total
shareholders’ equity and assets while not increasing our tangible common
equity or tangible assets.

The following table reconciles, as of the dates set forth below, total
shareholders’ equity to tangible common equity and total assets to tangible
assets and presents our tangible common equity to tangible assets:

                                                                                          
                Mar 31, 2017   Dec 31, 2016   Sep 30, 2016   Jun 30, 2016   Mar 31, 2016  
                                                                                          
                (Dollars in thousands)
Tangible                                                                                  
Common Equity
Total
shareholders’   $  437,288     $  430,482     $  426,215     $  434,941     $  430,910    
equity
Adjustments:                                                                              
Goodwill           85,291         85,291         85,291         85,291         85,291     
Core deposit       9,595          9,975          10,356         10,758         11,160     
intangibles
Tangible        $  342,402     $  335,216     $  330,568     $  338,892     $  334,459    
common equity
Tangible                                                                                  
Assets
Total assets    $  4,072,000   $  4,024,822   $  3,929,836   $  3,827,447   $  3,849,409  
Adjustments:                                                                              
Goodwill           85,291         85,291         85,291         85,291         85,291     
Core deposit       9,595          9,975          10,356         10,758         11,160     
intangibles
Tangible        $  3,977,114   $  3,929,556   $  3,834,189   $  3,731,398   $  3,752,958  
assets
Tangible
Common Equity      8.61      %    8.53      %    8.62      %    9.08      %    8.91      %
to Tangible
Assets

Return on Average Tangible Common Equity.  Return on average tangible common
equity is a non‑GAAP measure generally used by financial analysts and
investment bankers to evaluate financial institutions. We calculate: (a)
average tangible common equity as average shareholders’ equity less average
goodwill and average core deposit intangibles, net of accumulated
amortization; (b) net income less the effect of intangible assets as net
income plus amortization of core deposit intangibles, net of taxes; and (c)
return (as described in clause (a)) divided by average tangible common equity
(as described in clause (b)). For return on average tangible common equity,
the most directly comparable financial measure calculated in accordance with
GAAP is return on average equity.

We believe that this measure is important to many investors in the marketplace
who are interested in the return on common equity, exclusive of the impact of
intangible assets.  Goodwill and other intangible assets, including core
deposit intangibles, have the effect of increasing total shareholders’ equity,
while not increasing our tangible common equity.  This measure is particularly
relevant to acquisitive institutions who may have higher balances in goodwill
and other intangible assets than non-acquisitive institutions.

The following table reconciles, as of the dates set forth below, average
tangible common equity to average common equity and net income excluding
amortization of core deposit intangibles, net of tax to net income and
presents our return on average tangible common equity:

                                                                                  
                Mar 31,      Dec 31,      Sep 30, 2016   Jun 30,      Mar 31,     
                2017         2016                        2016         2016
                                                                                  
                (Dollars in thousands)
                                                                                  
Net income
(loss)
adjusted for
amortization                                                                      
of core
deposit
intangibles
Net income      $  7,212     $  2,544     $  (8,986  )   $  3,631     $  1,839    
(loss)
Adjustments:                                                                      
Plus:
Amortization
of core            380          382          402            402          402      
deposit
intangibles
Less: Tax
benefit at         133          134          141            141          141      
the statutory
rate
Net income
(loss)
adjusted for
amortization    $  7,459     $  2,792     $  (8,725  )   $  3,892     $  2,100    
of core
deposit
intangibles
                                                                                  
Average
Tangible                                                                          
Common Equity
Total average
shareholders’   $  435,695   $  427,550   $  434,620     $  435,459   $  440,745  
equity
Adjustments:                                                                      
Average            85,291       85,291       85,291         85,291       85,288   
goodwill
Average core
deposit            9,844        10,223       10,618         11,020       11,420   
intangibles
Average
tangible        $  340,560   $  332,036   $  338,711     $  339,148   $  344,037  
common equity
Return on
Average            8.88    %    3.38    %    (10.36  ) %    4.57    %    2.43    %
Tangible
Common Equity

 

Allowance for Loan Losses less Allowance for Loan Losses on Acquired Loans to
Total Loans excluding Acquired Loans.  The allowance for loan losses less
allowance for loan losses on acquired loans to total loans excluding acquired
loans is a non‑GAAP measure used by management to evaluate the Company’s
financial condition.  Due to the application of purchase accounting, we use
this non-GAAP ratio that excludes that impact of these items to evaluate our
allowance for loan losses to total loans.  We calculate: (a) total allowance
for loan losses less allowance for loan losses on acquired loans as allowance
for loan losses less the allowance for loan losses on acquired loans; (b)
total loans excluding acquired loans as total loans less the carrying value of
acquired loans accounted for under ASC topics 310-20 and 310-30; and (c)
allowance for loan losses less allowance for loan losses on acquired loans to
total loans excluding acquired loans as the allowance for loan losses less
allowance for loan losses on acquired loans (as calculated in clause (a))
divided by total loans excluding acquired loans (as calculated in clause
(b)).  For allowance for loan losses less allowance for loan losses on
acquired loans to total loans excluding acquired loans, the most directly
comparable financial measure calculated in accordance with GAAP is allowance
for loan losses to total loans.

We believe that this measure is important to many investors in the marketplace
who are interested in the relative changes from period to period in the
allowance for loan losses less allowance for loan losses on acquired loans to
total loans excluding acquired loans.  The acquired loans may have a premium
or discount associated with them that includes a potential credit loss
component with similar characteristics to the allowance for loan losses.  This
measure reports the allowance for loan loss coverage to only those loans not
accounted for pursuant to ASC topics 310-20 and 310-30 which may assist the
investor in evaluating the allowance coverage of loans excluding acquired
loans.

The following table reconciles, as of the dates set forth below, allowance for
loan losses less allowance for loan losses on acquired loans to total loans
excluding acquired loans:

                                                                                      
                                                                                      
            Mar 31,        Dec 31,        Sep 30,        Jun 30,        Mar 31,       
            2017           2016           2016           2016           2016
                                                                                      
            (Dollars in thousands)
Allowance
for loan
losses
less
allowance                                                                             
for loan
losses on
acquired
loans
Allowance
for loan    $  31,936      $  26,364      $  35,911      $  47,420      $  39,714     
losses
Less:
Allowance
for loan       2,825          2,509          5,235          3,219          1,638      
losses on
acquired
loans
Total
allowance
for loan
losses
less        $  29,111      $  23,855      $  30,676      $  44,201      $  38,076     
allowance
for loan
losses on
acquired
loans
                                                                                      
Total
loans
excluding                                                                             
acquired
loans
Total       $  3,012,275   $  3,098,220   $  3,047,618   $  3,189,436   $  3,168,183  
loans
Less:
Carrying
value of
acquired
loans
accounted      730,064        796,292        895,559        974,372        1,092,635  
for under
ASC
Topics
310-20
and
310-30
Total
loans
excluding   $  2,282,211   $  2,301,928   $  2,152,059   $  2,215,064   $  2,075,548  
acquired
loans
Allowance
for loan
losses
less
allowance
for loan
losses on     1.28       %   1.04       %   1.43       %   2.00       %   1.83       %
acquired
loans to
total
loans
excluding
acquired
loans

Allowance for Loan Losses plus Acquired Loan Net Discount to Total Loans
adjusted for Acquired Loan Net Discount.  Allowance for loan losses plus
acquired loan net discount to total loans adjusted for acquired loan net
discount is a non‑GAAP measure used by management to evaluate the Company’s
financial condition. We calculate: (a) allowance for loan losses plus acquired
loan net discount as allowance for loan losses plus acquired loan net
discount, net of accumulated amortization; (b) total loans adjusted for
acquired loan net discount as total loans plus acquired loan net discount, net
of accumulated amortization; and (c) allowance for loan losses plus acquired
loan net discount to total loans adjusted for acquired loan net discount as
allowance for loan losses plus acquired loan net discount (as calculated in
clause (a)) divided by total loans adjusted for acquired loan net discount (as
calculated in clause (b)).  For allowance for loan losses to total loans
excluding acquired loans, the most directly comparable financial measure
calculated in accordance with GAAP is allowance for loan losses to total
loans.

We believe that this measure is important to many investors in the marketplace
who are interested in the relative changes from period to period in the
allowance for loan losses plus the acquired loan net discount to total loans
adjusted for the acquired loan net discount.  This measure reports the
combined allowance for loan loss and acquired loan net discount (or premium)
as a percentage of loans inclusive of the acquired loan net discount (or
premium) which may assist the investor in evaluating allowance coverage on
loans inclusive of additional discount or premium resulting from purchase
accounting adjustments.

The following table reconciles, as of the dates set forth below, allowance for
loan losses plus acquired loans net discount to total loans adjusted for
acquired loan net discount:

                                                                                      
            Mar 31,        Dec 31,        Sep 30,        Jun 30,        Mar 31,       
            2017           2016           2016           2016           2016
                                                                                      
            (Dollars in thousands)
Allowance
for loan
losses
plus                                                                                  
acquired
loan net
discount
Allowance
for loan
losses at   $  31,936      $  26,364      $  35,911      $  47,420      $  39,714     
end of
period
Plus: Net
discount
on             7,314          9,937          13,698         20,412         22,871     
acquired
loans
Total
allowance
plus        $  39,250      $  36,301      $  49,609      $  67,832      $  62,585     
acquired
loan net
discount
                                                                                      
Total
loans
adjusted
for                                                                                   
acquired
loan net
discount
Total       $  3,012,275   $  3,098,220   $  3,047,618   $  3,189,436   $  3,168,183  
loans
Plus: Net
discount
on             7,314          9,937          13,698         20,412         22,871     
acquired
loans
Total
loans
adjusted
for         $  3,019,589   $  3,108,157   $  3,061,316   $  3,209,848   $  3,191,054  
acquired
loan net
discount
Allowance
for loan
losses
plus
acquired
loan net
discount
loans to      1.30       %   1.17       %   1.62       %   2.11       %   1.96       %
total
loans
adjusted
for
acquired
loan net
discount

Pre-tax, Pre-provision Return on Average Assets.  Pre-tax, pre-provision
return on average assets is a non‑GAAP measure used by management to evaluate
the Company’s financial performance. We calculate: (a) pre-tax, pre-provision
net income as net income (loss) plus provision (benefit) for income taxes,
plus provision for loan losses and (b) return (as described in clause (a))
divided by total average assets.  For pre-tax, pre-provision net income, the
most directly comparable financial measure calculated in accordance with GAAP
is net income and for pre-tax, pre-provision return on average assets is
return on average assets.

We believe that this measure is important to many investors in the marketplace
who are interested in understanding the operating performance of the company
before provision for loan losses, which can vary from quarter to quarter, and
income taxes.  

The following table reconciles, as of the dates set forth below, pre-tax,
pre-provision return on average assets:

                                                                                            
                For the Quarter Ended                                                       
                Mar 31, 2017   Dec 31, 2016   Sep 30, 2016     Jun 30, 2016   Mar 31, 2016  
                                                                                            
                (Dollars in thousands)
Pre-Tax,
Pre-Provision                                                                               
Net Income
Net Income      $  7,212       $  2,544       $  (8,986    )   $  3,631       $  1,839      
(loss)
Plus:
Provision          3,942          1,355          (4,831    )      2,017          1,057      
(benefit) for
income taxes
Plus:
Provision for      6,145          9,500          28,200           11,000         16,000     
loan losses
Total
pre-tax,        $  17,299      $  13,399      $  14,383        $  16,648      $  18,896     
pre-provision
net income
                                                                                            
Total Average   $  4,016,744   $  3,974,244   $  3,894,127     $  3,803,832   $  3,769,424  
Assets
Pre-Tax,
Pre-Provision
Return on          1.75      %    1.36      %    1.49        %    1.74      %    1.99      %
Average
Assets

Media Contact:
Mike Barone
713-275-8243
mbarone@greenbank.com

Investor Relations:
713-275-8220
investors@greenbank.com

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