Green Bankshares Reports Loss for Second Quarter of 2009 Driven Primarily by Non-Cash Goodwill Impairment Charge

GREENEVILLE, Tenn.--(BUSINESS WIRE)--Green Bankshares, Inc. (NASDAQ:GRNB), the holding company for GreenBank, today reported a net loss for the second quarter and six months ended June 30, 2009. The net loss of $151.4 million or $11.58 per diluted share for the second quarter of 2009 was primarily driven by an after-tax, non-cash goodwill impairment charge of $137.4 million or $10.51 per diluted share. This charge had no impact on the Company's cash, liquidity, tangible equity ratio, or its strong regulatory capital ratios. Excluding goodwill impairment, the Company's net operating loss totaled $14.0 million or $1.07 per diluted share for the quarter. (Please refer to the reconciliation of non-GAAP measures included on page four of this press release.)

Stan Puckett, Chairman and Chief Executive Officer, commented, "As a result of continued deterioration in real estate market conditions and the further weakening in the economic environment, the Company has experienced a sharp decline in its stock price, not only from year-end 2008, but also from the end of the first quarter of 2009. This decline resulted in the market price of the Company's common stock trading at a deep discount from both net book value and tangible book value per share over an extended period, which in turn led to the non-cash charge associated with the write off of the entire amount of non-amortizing goodwill on our balance sheet."

Puckett added, "Despite the second quarter net loss of $151.4 million and net operating loss of $14.0 million, the Company's capital ratios remain extremely strong. At June 30, 2009, GreenBank's Tier 1 Leverage Ratio was 10.85%, its Tier 1 Risk-based Capital Ratio was 13.46%, and its Total Risk-based Capital Ratio was 14.72% – all well above the required minimums of 5%, 6% and 10%, respectively, to be deemed a 'well capitalized' financial institution. Additionally, the Company's ratio of tangible equity to tangible assets was 5.98% at June 30, 2009."

For the six months ended June 30, 2009, the Company reported a net loss of $147.9 million or $11.32 per diluted share, including the after-tax, non-cash goodwill impairment charge of $137.4 million or $10.52 per diluted share. Excluding the goodwill impairment charge, the net operating loss was $10.5 million or $0.80 per diluted share. For the three and six month periods ended June 30, 2008, the Company reported net income of almost $1.5 million and $8.6 million, respectively, and net income per diluted share of $0.11 and $0.67, respectively.

The net operating loss of $14.0 million during the second quarter of 2009 was primarily influenced by a loan loss provision of $24.4 million, accompanied by approximately $3.3 million in net write-offs related to foreclosed properties. In addition, the one-time assessment, levied against all banks by the FDIC, increased the Company's FDIC deposit insurance costs to $2.6 million for the quarter.

The following information graphically displays the Bank-only loan portfolio breakdown, by purpose code, at June 30, 2009, and does not include overdraft reclassifications:

(See accompanying chart)

During the second quarter, the Company increased its loan loss reserve to $50,157,000, which represented 2.30% of loans at June 30, 2009, compared with 2.19% at March 31, 2009, and 1.51% of loans at June 30, 2008. As economic conditions continued to deteriorate during the second quarter of 2009, the Company's net loan charge-offs totaled $23,281,000 and a loan loss provision of $24,384,000 was deemed necessary. For the year-to-date period, the Company's provision for loan losses totaled $25,369,000 versus $11,907,000 for the first six months of 2008.

At June 30, 2009, non-performing assets (NPAs) totaled $129,177,000 or 4.91% of total assets compared with $121,272,000 or 4.34% of total assets at March 31, 2009. At the end of the second quarter, loans past due 90 days and still accruing interest totaled $820,000, declining from $4,058,000 at March 31, 2009. The following table reflects the movement in non-accrual loan and other real-estate owned (OREO) balances from March 31, 2009, to June 30, 2009:

		Non-accrual Loans				OREO Balances
Balance at March 31, 2009		$	104,563,000			$	12,651,000
Loan foreclosures			(31,420,000	)			31,420,000
Loan charge-offs			(24,631,000	)			N/A
Loans added to non-accrual, net			45,377,000				N/A
OREO sales			N/A				(6,257,000	)
OREO write-downs, net			N/A				(3,346,000	)
Balance at June 30, 2009		$	93,889,000			$	34,468,000

Puckett added, "As we conducted our loan impairment analysis during the quarter, we identified loans totaling approximately $6,200,000 that were currently performing in all respects, but given our increasingly cautious stance in the current economic environment, we proactively placed these loans on non-accrual status, taking a partial charge-off of $2,300,000."

Net interest income totaled $20,180,000 for the second quarter of 2009, increasing $751,000 from the first quarter of 2009, net of interest reversals of $740,646. The increase primarily resulted from a widening of the net interest margin to 3.43% from 3.23% for the first quarter of 2009. Compared with the second quarter of 2008, net interest income declined $4,864,000 primarily due to the higher level of non-accrual loans.

Non-interest income for the second quarter of 2009 totaled $7,541,000, which represented an increase of $598,000 or almost 9% from the first quarter of the year. Improvements were realized in deposit revenues as well as wealth management income and mortgage banking income. Given the current environment, GreenBank's High Performance Checking account product continues to perform well, with the Company adding 4,418 net new accounts during the second quarter for a new account opening ratio of 2.31 for every account closed. Compared with the second quarter of 2008, non-interest income declined $571,000 or 7%, reflecting general weakness in the economy.

Non-interest expense totaled $169,143,000 for the second quarter of 2009 and included the $143,389,000 non-cash goodwill impairment charge. Operating expenses, excluding the goodwill impairment charge, totaled $25,754,000 for the current quarter, an increase of $7,923,000 from the first quarter of 2009. (Please refer to the reconciliation of non-GAAP measures included on page four of this release.) The large expense items associated with the second quarter increase were higher advertising costs associated with the High Performance Checking product, which rose $615,000; an increase of $3,265,000 in OREO related costs; the increase of $1,850,000 in FDIC deposit insurance costs associated with the one-time special assessment levied against all banks; higher collection costs of $413,000; and a write-down of $524,000 taken in connection with two investments held in the securities portfolio.

Puckett concluded, "Although many economists have indicated that the economy has bottomed, none are projecting, at this time, how long the bottom will last before we see signs of economic improvement. We are cautiously optimistic that, as the economy begins to turn, given our strong capital levels, we will be positioned to actively participate in the economic recovery cycle."

Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.630 billion, is the holding company for GreenBank. GreenBank, which traces its origin to 1890, has 63 branches across East and Middle Tennessee, and one branch each in Bristol, Virginia, and Hot Springs, North Carolina. It also provides wealth management services through its GreenWealth Division and residential mortgage lending through its Mortgage Division. In addition, GreenBank conducts separate businesses through three wholly owned subsidiaries: Superior Financial Services, Inc., a consumer finance company; GCB Acceptance Corporation, a consumer finance company specializing in automobile lending; and Fairway Title Co., a title insurance company.

GREEN BANKSHARES, INC. Reconciliation of Non-GAAP Measures Presented in Earnings Release (Dollars in thousands)
		Three Months Ended										Six Months Ended
		June 30, 2009				March 31, 2009			June 30, 2008			June 30, 2009				June 30, 2008
Total non-interest expense		$	169,143			$	17,831		$	20,140		$	186,974			$	39,701
Goodwill impairment charge			(143,389	)			--			--			(143,389	)			--
Operating expenses		$	25,754			$	17,831		$	20,140		$	43,585			$	39,701
Net income (loss) available to common shareholders		$	(151,400	)		$	3,548		$	1,462		$	(147,852	)		$	8,640
Goodwill impairment charge, net of tax			137,414				--			--			137,414				--
Net operating income (loss)		$	(13,986	)		$	3,548		$	1,462		$	(10,438	)		$	8,640
Per Diluted Share:
Net income (loss) available to common shareholders		$	(11.58	)		$	0.27		$	0.11		$	(11.32	)		$	0.67
Goodwill impairment charge, net of tax			10.51				--			--			10.52				--
Net operating income (loss)		$	(1.07	)		$	0.27		$	0.11		$	(0.80	)		$	0.67

Use of Non-GAAP financial measures

The above table presents computations and other financial information excluding the goodwill impairment charge (non-GAAP). The goodwill impairment charge is included in the financial results presented in accordance with generally accepted accounting principles (GAAP). The Company believes that the exclusion of goodwill impairment in expressing net operating income (loss), operating expenses and earnings (loss) per share data provides a more meaningful base for period to period comparisons which will assist investors in analyzing the operating results of the Company and predicting operating performance. The Company utilizes these non-GAAP financial measures to compare the operating performance with comparable periods in prior years and with internally prepared projections. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. To mitigate these limitations, the Company has policies in place to address goodwill impairment from other normal operating expenses to ensure that the Company's operating results are properly reflected for period to period comparisons.

Certain matters discussed in this news release are not historical facts but are "forward-looking statements" within the meaning of and are furnished pursuant to the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risk and uncertainty and actual results could differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Risks and uncertainties related to the Company's business are discussed in the Company's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2008, and include, but are not limited to, (1) unanticipated deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (2) continued deterioration in the residential real estate market; (3) further decline in the economy in the markets that the Company serves; (4) changes in the legislative and regulatory environment; (5) the Company's inability to successfully implement its growth strategy; and (6) the loss of key personnel. The Company undertakes no obligation to update forward-looking statements.

	GREEN BANKSHARES, INC. Unaudited Financial Highlights (In thousands, except per share amounts)
			Three Months Ended											Six Months Ended
			June 30, 2009				March 31, 2009			June 30, 2008				June 30, 2009				June 30, 2008
	Interest income		$	34,856			$	35,380		$	42,694			$	70,236			$	88,803
	Interest expense			14,676				15,951			17,650				30,627				39,287
	Net interest income			20,180				19,429			25,044				39,609				49,516
	Provision for loan losses			24,384				985			11,019				25,369				11,907
	Net interest income after provision for loan losses			(4,204	)			18,444			14,025				14,240				37,609
	Non-interest income			7,541				6,943			8,112				14,484				15,418
	Non-interest expense			169,143				17,831			20,140				186,974				39,701
	Income (loss) before income taxes			(165,806	)			7,556			1,997				(158,250	)			13,326
	Income taxes provision (benefit)			(15,656	)			2,776			535				(12,880	)			4,686
	Income (loss)			(150,150	)			4,780			1,462				(145,370	)			8,640
	Preferred stock dividends and related costs			1,250				1,232			--				2,482				--
	Net income (loss) available to common shareholders		$	(151,400	)		$	3,548		$	1,462			$	147,852	)		$	8,640
	Comprehensive income (loss)		$	(150,557	)		$	5,668		$	(2,225	)		$	(144,889	)		$	6,931
	Earnings (loss) per share:
	Basic		$	(11.58	)		$	0.27		$	0.11			$	(11.32	)		$	0.67
	Diluted		$	(11.58	)		$	0.27		$	0.11			$	(11.32	)		$	0.67
	Weighted average shares:
	Basic			13,070				13,063			12,932				13,067				12,931
	Diluted 1			13,070				13,142			12,958				13,067				12,940
	Dividends declared per share		$	0.00			$	0.13		$	0.13			$	0.13			$	0.26
										June 30, 2009				Dec. 31, 2008				June 30, 2008
	Total assets									$	2,629,834			$	2,944,671			$	3,018,536
	Cash and cash equivalents										107,573				198,358				94,158
	Investment securities										181,234				217,249				290,388
	Loans, net of unearned interest										2,183,754				2,223,390				2,347,241
	Allowance for loan losses										(50,157	)			(48,811	)			(35,351	)
	Deposits										2,026,722				2,184,147				2,260,950
	Shareholders' equity										233,192				381,231				326,427
	Common shareholders' equity 2										167,151				315,885				326,427
	Tangible common shareholders' equity 3										156,522				160,411				169,909
	Common book value per share 2										12.69				24.09				25.11
	Tangible common book value per share 3										11.88				12.23				13.07
1	Diluted weighted average shares outstanding for the three- and six-month periods ended June 30, 2009, exclude 105,734 and 92,420 restricted average shares, respectively, because their impact would be anti-dilutive.
2	Common shareholders' equity is shareholders' equity less preferred stock.
3	Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock.

GREEN BANKSHARES, INC.
Consolidated Balance Sheets
June 30, 2009, December 31, 2008 and June 30, 2008
(Dollars in thousands)
			(Unaudited)								(Unaudited)
			June 30,				December 31,				June 30,
			2009				2008*				2008
ASSETS
Cash and due from banks		$	103,454			$	193,095			$	59,823
Federal funds sold			4,119				5,263				34,335
Cash and cash equivalents			107,573				198,358				94,158
Securities available-for-sale ("AFS")			167,853				203,562				276,378
Securities held-to-maturity (with a market value of $629, $601 and $942 on June 30, 2009, December 31, 2008 and June 30, 2008)			647				657				968
FHLB and other stock, at cost			12,734				13,030				13,042
Loans held for sale			3,634				442				2,540
Loans, net of unearned income			2,183,754				2,223,390				2,347,241
Allowance for loan losses			(50,157	)			(48,811	)			(35,351	)
Other real estate owned and repossessed assets			34,468				45,371				20,632
Bank premises and equipment, net			83,448				83,359				83,010
Cash surrender value of life insurance			30,113				29,539				29,001
Goodwill			-				143,389				143,140
Core deposit and other intangibles			10,629				12,085				13,378
Other assets			45,138				40,300				30,399
Total assets		$	2,629,834			$	2,944,671			$	3,018,536
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits		$	165,735			$	176,685			$	195,104
Interest-bearing deposits			1,746,895				1,645,115				1,735,772
Brokered deposits			114,092				362,347				330,074
Total deposits			2,026,722				2,184,147				2,260,950
Repurchase agreements			25,990				35,302				91,641
FHLB advances and notes payable			229,154				229,349				230,010
Subordinated debentures			88,662				88,662				88,662
Accrued interest payable and other liabilities			26,114				25,980				20,846
Total liabilities			2,396,642				2,563,440				2,692,109
SHAREHOLDERS' EQUITY
Preferred stock: no par value, 1,000,000 shares authorized; 72,278, 72,278 and -0- shares outstanding			66,041				65,346				-
Common stock: $2 par value, 20,000,000 shares authorized; 13,175,817, 13,112,687 and 13,001,2226 shares outstanding			26,351				26,225				26,003
Common stock warrants			6,934				6,934				-
Additional paid in capital			187,966				187,742				185,428
Retained earnings (deficit)			(53,918	)			95,647				115,198
Accumulated other comprehensive income (loss)			(182	)			(663	)			(202	)
Total shareholders' equity			233,192				381,231				326,427
Total liabilities & shareholders' equity		$	2,629,834			$	2,944,671			$	3,018,536
* Derived from Audited Consolidated Financial Statements.

GREEN BANKSHARES, INC.
Consolidated Statements of Income and Comprehensive Income
Three Months Ended June 30, 2009, March 31, 2009 and June 30, 2008 and Six Months Ended June 30, 2009 and 2008
(Unaudited)
(Dollars in thousands except share and per share data)
			Three Months Ended											Six Months Ended
			June 30,				March 31,			June 30,				June 30,				June 30,
			2009				2009			2008				2009				2008
Interest income:
Interest and fees on loans		$	32,528			$	32,645		$	39,407			$	65,173			$	82,156
Taxable securities			1,843				2,220			2,784				4,063				5,647
Nontaxable securities			314				320			324				634				657
FHLB and other stock			135				150			157				285				317
Federal funds sold and other			36				45			22				81				26
Total interest income			34,856				35,380			42,694				70,236				88,803
Interest expense:
Deposits			11,511				12,653			13,377				24,164				29,312
Federal funds purchased and repurchase agreements			7				9			700				16				1,792
FHLB advances and notes payable			2,469				2,443			2,565				4,912				5,743
Subordinated debentures			689				846			1,008				1,535				2,440
Total interest expense			14,676				15,951			17,650				30,627				39,287
Net interest income			20,180				19,429			25,044				39,609				49,516
Provision for loan losses			24,384				985			11,019				25,369				11,907
Net interest income (loss) after provision for loan losses			(4,204	)			18,444			14,025				14,240				37,609
Non-interest income:
Service charges on deposit accounts			5,795				5,356			5,988				11,151				11,455
Other charges and fees			505				449			505				954				1,009
Trust and investment services income			489				388			548				877				834
Mortgage banking income			110				55			293				165				550
Other income			642				695			778				1,337				1,570
Total non-interest income			7,541				6,943			8,112				14,484				15,418
Non-interest expense:
Employee compensation			8,064				7,692			8,069				15,756				16,659
Employee benefits			1,229				1,295			1,187				2,524				2,446
Occupancy expense			1,712				1,787			1,649				3,499				3,364
Equipment expense			895				742			745				1,637				1,847
Computer hardware/software expense			651				637			719				1,288				1,351
Professional services			446				529			504				975				958
Advertising			679				64			814				743				1,688
Loss on OREO and repossessed assets			3,346				81			1,066				3,427				1,080
FDIC insurance			2,550				700			366				3,250				763
Core deposit and other intangible amortization			652				804			655				1,456				1,309
Goodwill impairment			143,389				-			-				143,389				-
Other expenses			5,530				3,500			4,366				9,030				8,236
Total non-interest expense			169,143				17,831			20,140				186,974				39,701
Income (loss) before income taxes			(165,806	)			7,556			1,997				(158,250	)			13,326
Income taxes provision (benefit)			(15,656	)			2,776			535				(12,880	)			4,686
Net income (loss)			(150,150	)			4,780			1,462				(145,370	)			8,640
Preferred stock dividends and accretion of discount on warrants			1,250				1,232			-				2,482				-
Net income (loss) available to common shareholders		$	(151,400	)		$	3,548		$	1,462			$	(147,852	)		$	8,640
Comprehensive income (loss)		$	(150,557	)		$	5,668		$	(2,255	)		$	(144,889	)		$	6,931
Per share of common stock:
Basic earnings (loss)			($11.58	)			$0.27			$0.11				($11.32	)			$0.67
Diluted earnings (loss)			($11.58	)			$0.27			$0.11				($11.32	)			$0.67
Dividends			$0.00				$0.13			$0.13				$0.13				$0.26
Weighted average shares outstanding:
Basic			13,070,216				13,062,881			12,931,669				13,066,569				12,931,419
Diluted1			13,070,216				13,141,840			12,958,439				13,066,569				12,939,638
1 Diluted weighted average shares outstanding for the three and six months ended June 30, 2009 excludes 105,734 and 92,420 shares, respectively, because they are anti-dilutive.
Non-GAAP Measures Presented in Earnings Release
Total non-interest expense		$	169,143			$	17,831		$	20,140			$	186,974			$	39,701
Goodwill impairment charge			(143,389	)			-			-				(143,389	)			-
Operating expenses		$	25,754			$	17,831		$	20,140			$	43,585			$	39,701
Net income (loss) available to common shareholders		$	(151,400	)		$	3,548		$	1,462			$	(147,852	)		$	8,640
Goodwill impairment charge, net of tax			137,414				-			-				137,414				-
Net operating income (loss)		$	(13,986	)		$	3,548		$	1,462			$	(10,438	)		$	8,640

GREEN BANKSHARES, INC.
Consolidated Financial Highlights
(UNAUDITED)
(Dollars in thousands except share and per share data)
			June 30, 2009				December 31, 2008			% Change
Financial Condition Data:
Assets		$	2,629,834			$	2,944,671			-10.69	%
Loans, net of unearned interest			2,183,754				2,223,390			-1.78	%
Cash and investments			288,807				415,607			-30.51	%
Federal funds sold			4,119				5,263			-21.74	%
Deposits			2,026,722				2,184,147			-7.21	%
FHLB advances and notes payable			229,154				229,349			-0.09	%
Subordinated debentures			88,662				88,662			0.00	%
Repurchase agreements			25,990				35,302			-26.38	%
Shareholders' equity			233,192				381,231			-38.83	%
Common shareholders' equity (1)			167,151				315,885			-47.08	%
Tangible common shareholders' equity (2)			156,522				160,411			-2.42	%
Tangible shareholders' equity (3)			222,563				225,757			-1.41	%
Ratios:
Common book value per share (1)			$12.69				$24.09			-47.32	%
Tangible common book value per share (2)			$11.88				$12.23			-2.86	%
Total tangible equity to tangible assets (3)(4)			8.50	%			8.09	%		4.98	%
Tangible common equity to tangible assets (2)(4)			5.98	%			5.75	%		3.91	%
Average equity to average assets			13.63	%			11.24	%		21.26	%
(1) Common shareholders' equity is shareholders' equity less preferred stock.
(2) Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock.
(3) Tangible shareholders' equity is shareholders' equity less goodwill and intangible assets.
(4) Tangible assets is total assets less goodwill and intangible assets.
			Three Months Ended											Six Months Ended
			June 30,											June 30,
			2009				2008			% Change				2009				2008			% Change
Operating Data:
Total interest income		$	34,856			$	42,694			-18.36	%		$	70,236			$	88,803			-20.91	%
Total interest expense			14,676				17,650			-16.85	%			30,627				39,287			-22.04	%
Net interest income			20,180				25,044			-19.42	%			39,609				49,516			-20.01	%
Provision for loan losses			24,384				11,019			121.29	%			25,369				11,907			113.06	%
Net interest income (loss) after provision for loan losses			(4,204	)			14,025			-129.98	%			14,240				37,609			-62.14	%
Non-interest income			7,541				8,112			-7.04	%			14,484				15,418			-6.06	%
Non-interest expense			169,143				20,140			739.84	%			186,974				39,701			370.96	%
Income (loss) before income taxes			(165,806	)			1,997			N/M				(158,250	)			13,326			N/M
Income tax expense (benefit)			(15,656	)			535			N/M				(12,880	)			4,686			N/M
Net income (loss)			(150,150	)			1,462			N/M				(145,370	)			8,640			N/M
Preferred stock dividend and accretion of discount on warrants			1,250				-			100.00	%			2,482				-			100.00	%
Net income (loss) available to common shareholders		$	(151,400	)		$	1,462			N/M			$	(147,852	)		$	8,640			N/M
Comprehensive income (loss)		$	(150,557	)		$	(2,255	)		N/M			$	(144,889	)		$	6,931			N/M
Per Share of Common Stock:
Basic earnings (loss)			($11.58	)			$0.11			N/M				($11.32	)			$0.67			N/M
Diluted earnings (loss)			($11.58	)			$0.11			N/M				($11.32	)			$0.67			N/M
Dividends			$0.00				$0.13			-100.00	%			$0.13				$0.26			-50.00	%
Weighted Average Shares Outstanding:
Basic			13,070,216				12,931,669							13,066,569				12,931,419
Diluted			13,070,216				12,958,439							13,066,569				12,939,638
			Three Months Ended											Six Months Ended June 30,
			June 30,				March 31,			June 30,
			2009				2009			2008				2009				2008
Key Financial Ratios:
Return on average assets			-21.67	%			0.51	%		0.20	%			-10.56	%			0.59	%
Return on average shareholders' equity			-157.41	%			3.74	%		1.76	%			-77.37	%			5.25	%
Return on average common shareholders' equity (1)			-189.79	%			4.52	%		1.76	%			-93.47	%			5.25	%
Return on average common tangible shareholders' equity (2)			-363.33	%			8.84	%		3.33	%			-180.70	%			9.99	%
Interest rate spread			3.26	%			3.01	%		3.70	%			3.13	%			3.65	%
Net interest margin			3.43	%			3.23	%		3.92	%			3.33	%			3.89	%
(1) Common shareholders' equity is shareholders' equity less preferred stock.
(2) Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock.
			June 30,				December 31,			June 30,
			2009				2008			2008
Asset Quality Ratios:
Nonperforming loans as a percentage of total loans, net of unearned income			4.34	%			1.41	%		1.73	%
Nonperforming assets as a percentage of total assets			4.91	%			2.61	%		2.03	%
Allowance for loan losses as a percentage of total loans, net of unearned income			2.30	%			2.20	%		1.51	%
Allowance for loan losses as a percentage of nonperforming loans			52.96	%			155.28	%		87.11	%
Net charge-offs to average total loans, net of unearned income			1.08	%			1.63	%		0.45	%

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GREEN BANKSHARES, INC.
Consolidated Financial Highlights
June 30, 2009
(UNAUDITED)
Nonperforming Assets and Net Charge-offs													Asset Quality Ratios
As of and for the three months ended June 30, 2009			Bank			Other			Total				As of and for the three months ended June 30, 2009			Bank			Other			Consolidated
Loans past due 90 days and still accruing		$	809		$	11		$	820				Nonperforming loans as a percentage of total loans, net of unearned income			4.33%			1.89%			4.34%
Nonaccrual loans			93,086			803			93,889				Nonperforming assets as a percentage of total assets			4.88%			2.00%			4.91%
Other real estate owned and repossessed assets			34,248			220			34,468				Allowance for loan losses as a percentage of total loans, net of unearned income			2.15%			8.11%			2.30%
Total nonperforming assets		$	128,143		$	1,034		$	129,177				Allowance for loan losses as a percentage of nonperforming loans			49.70%			428.99%			52.96%
													YTD net charge-offs to average total loans, net of unearned income			1.04%			2.71%			1.08%
YTD net charge-offs		$	22,893		$	1,130		$	24,023
As of and for the three months ended June 30, 2008			Bank			Other			Total				As of and for the three months ended June 30, 2008			Bank			Other			Consolidated
Loans past due 90 days and still accruing		$	161		$	-		$	161				Nonperforming loans as a percentage of total loans, net of unearned income			1.71%			1.51%			1.73%
Nonaccrual loans			39,809			610			40,419				Nonperforming assets as a percentage of total assets			2.00%			2.13%			2.03%
Other real estate owned and repossessed assets			20,201			431			20,632				Allowance for loan losses as a percentage of total loans, net of unearned income			1.37%			8.02%			1.51%
Total nonperforming assets		$	60,171		$	1,041		$	61,212				Allowance for loan losses as a percentage of nonperforming loans			80.34%			530.82%			87.11%
													YTD net charge-offs to average total loans, net of unearned income			0.42%			2.04%			0.45%
YTD net charge-offs		$	9,865		$	802		$	10,667