EXHIBIT 99.1
CONTACT:	James E. Adams
	Executive Vice President and Chief Financial Officer
	423-278-3050

GREEN BANKSHARES REPORTS LOSS FOR SECOND QUARTER OF 2009

DRIVEN PRIMARILY BY NON-CASH GOODWILL IMPAIRMENT CHARGE

GREENEVILLE, Tenn. (July 21, 2009) – 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.

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Green Bankshares, Inc. ▪ 100 North Main Street ▪ Greeneville, TN  37743 ▪ (423) 639-5111

GRNB Reports Second Quarter Loss

Page 2

July 21, 2009

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

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."

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GRNB Reports Second Quarter Loss

Page 3 

July 21, 2009

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.

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GRNB Reports Second Quarter Loss

Page 4

July 21, 2009

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.

-END-

GRNB Reports Second Quarter Loss

Page 5

July 21, 2009

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.

-END-

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
1Diluted 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,			December 31,			%
	2009			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,			March 31,			June 30,			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	%

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
As of and for the year ended December 31, 2008	Bank		Other		Total		As of and for the year ended December 31, 2008	Bank			Other			Consolidated
Loans past due 90 days and still accruing	$	509	$	-	$	509	Nonperforming loans as a percentage of total loans, net of unearned income		1.38	%		2.48	%		1.41	%
Nonaccrual loans		29,956		970		30,926	Nonperforming assets as a percentage of total assets		2.58	%		2.57	%		2.61	%
Other real estate owned and repossessed assets		45,054		317		45,371	Allowance for loan losses as a percentage of total loans, net of unearned income		2.06	%		8.27	%		2.20	%
Total nonperforming assets	$	75,519	$	1,287	$	76,806	Allowance for loan losses as a percentage of nonperforming loans		149.59	%		333.81	%		155.28	%
							Net charge-offs to average total loans, net of unearned income		1.53	%		6.42	%		1.63	%
Net charge-offs	$	35,564	$	2,546	$	38,110

GREEN BANKSHARES, INC.
Condensed Average Balances, Interest Rates and Yields
June 30, 2009
	Three Months Ended														Six Months Ended
	June 30,														June 30,
	2009							2008							2009							2008
	Average				Average			Average				Average			Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Loans(1)(2)		2,127,104		32,538		6.14	%		2,340,923		39,421		6.77	%		2,151,190		65,193		6.11	%		2,332,642		82,187		7.09	%
Investment securities (2)		195,390		2,461		5.05	%		246,541		3,439		5.61	%		206,015		5,323		5.21	%		246,202		6,975		5.70	%
Other short-term investments		59,883		36		0.24	%		4,358		22		2.03	%		65,141		81		0.25	%		2,408		25		2.09	%
Total interest-earning assets		2,382,377		35,035		5.90	%		2,591,822		42,882		6.65	%		2,422,346		70,597		5.88	%		2,581,252		89,187		6.95	%
Non-interest earning assets		420,404							352,299							402,244							355,007
Total assets		2,802,781							2,944,121							2,824,590							2,936,259
Interest-bearing liabilities:
Deposits:
Interest checking, money market and savings		731,422		2,542		1.39	%		675,467		2,255		1.34	%		677,863		4,394		1.31	%		686,444		5,580		1.63	%
Time deposits		1,155,533		8,969		3.11	%		1,233,075		11,122		3.63	%		1,225,516		19,770		3.25	%		1,185,132		23,732		4.03	%
Total interest bearing-deposits		1,886,955		11,511		2.45	%		1,908,542		13,377		2.82	%		1,903,379		24,164		2.56	%		1,871,576		29,312		3.15	%
Securities sold under repurchase and short-term borrowings		28,171		7		0.10	%		157,317		700		1.79	%		30,609		16		0.11	%		155,188		1,792		2.32	%
Notes payable		317,827		3,158		3.99	%		335,438		3,573		4.28	%		317,885		6,447		4.09	%		367,484		8,183		4.48	%
Total interest-bearing liabilities		2,232,953		14,676		2.64	%		2,401,297		17,650		2.96	%		2,251,873		30,627		2.74	%		2,394,248		39,287		3.30	%
Non-interest bearing liabilities:
Demand Deposits		162,458							186,136							165,268							186,295
Other Liabilities		21,597							23,311							22,098							24,639
Total non-interest bearing liabilities		184,055							209,447							187,366							210,934
Total liabilities		2,417,008							2,610,744							2,439,239							2,605,182
Shareholders' equity		385,773							333,377							385,351							331,077
Total liabilities & shareholders' equity		2,802,781							2,944,121							2,824,590							2,936,259
Net interest income				20,359							25,232							39,970							49,900
Interest rate spread						3.26	%						3.70	%						3.13	%						3.65	%
Net yield on interest-earning assets (net interest margin)						3.43	%						3.92	%						3.33	%						3.89	%
(1)Average loan balances exclude nonaccrual loans for the periods presented.
(2)Fully Taxable Equivalent (“FTE”) at the rate of 35%. The FTE basis adjusts for the tax benefits of income on certain tax-exempt loans and investments using the federal statutory rate of 35% for each period presented. The Company believes this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts.

GREEN BANKSHARES, INC.

Consolidated Financial Highlights

June 30, 2009

(UNAUDITED)

	June 30, 2009						March 31, 2009
Loans	Balance			%			Balance			%			% Change
Commercial	$	300,325			13.66	%	$	311,696			13.80	%		-3.65	%
Commercial real estate		1,409,007			64.08	%		1,460,343			64.63	%		-3.52	%
Residential real estate		400,207			18.20	%		396,000			17.53	%		1.06	%
Consumer		86,491			3.93	%		87,720			3.88	%		-1.40	%
Other		2,933			0.13	%		3,598			0.16	%		-18.48	%
Total loans		2,198,963			100.00	%		2,259,357			100.00	%		-2.67	%
Less: Unearned income		(15,209	)					(14,509	)
Loans, net of unearned income	$	2,183,754					$	2,244,848
Loan Balances by Geographical Region and Operating Subsidiaries
	June 30, 2009						March 31, 2009
	Loan			% to			Loan			% to
	Balance			Total Loans			Balance			Total Loans			% Change
Northeastern Tennessee Region1	$	529,615			24.25	%	$	532,727			23.73	%		-0.58	%
East Tennessee Region		745,853			34.15	%		776,550			34.59	%		-3.95	%
Middle Tennessee Region		865,204			39.63	%		894,101			39.83	%		-3.23	%
GCB Acceptance Corporation		19,081			0.87	%		18,138			0.81	%		5.20	%
Superior Financial Services, Inc.		24,001			1.10	%		23,332			1.04	%		2.87	%
Loans, net of unearned income	$	2,183,754			100.00	%	$	2,244,848			100.00	%		-2.72	%
1 Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina

	June 30, 2009					March 31, 2009
Deposits	Balance		%			Balance		%			% Change
Non-interest bearing demand	$	165,735		8.18	%	$	168,178		8.25	%		-1.45	%
Interest bearing demand		585,149		28.87	%		487,868		23.93	%		19.94	%
Money market and savings		216,004		10.66	%		170,033		8.34	%		27.04	%
Retail time		606,192		29.91	%		645,510		31.67	%		-6.09	%
Jumbo time		453,642		22.38	%		566,931		27.81	%		-19.98	%
Total	$	2,026,722		100.00	%	$	2,038,520		100.00	%		-0.58	%
Deposit Balances by Geographical Region
	June 30, 2009					March 31, 2009
	Balance		%			Balance		%			% Change
Northeastern Tennessee Region1	$	782,706		38.62	%	$	809,366		39.70	%		-3.29	%
East Tennessee Region		290,683		14.34	%		273,726		13.43	%		6.19	%
Middle Tennessee Region		953,333		47.04	%		955,428		46.87	%		-0.22	%
Total	$	2,026,722		100.00	%	$	2,038,520		100.00	%		-0.58	%
1 Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina