8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

————————————————

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 21, 2010

GREEN BANKSHARES, INC.

(Exact name of Registrant as specified in its charter)

Tennessee	0-14289	62-1222567
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

100 North Main Street, Greeneville, Tennessee  37743-4992

(Address of principal executive offices)

(423) 639-5111

Registrant's telephone number, including area code

Not Applicable

(Former Name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 21, 2010, Green Bankshares, Inc. (the "Company") announced financial results for the first quarter ended March 31, 2010.  The full text of the press release is set forth in Exhibit 99.1 hereto.

The information in this Form 8-K and the attached Exhibit is being furnished pursuant to Item 2.02 "Results of Operations and Financial Condition" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d)             Exhibits.

99.1               Press Release dated April 21, 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GREEN BANKSHARES, INC.
Date:  April 22, 2010	By:	/s/	James E. Adams
			James E. Adams
			Executive Vice President and
			Chief Financial Officer
			(Duly Authorized Representative)

EXHIBIT INDEX

Exhibit Number	Description of Exhibit(s)
99.1	Copy of press release issued by the Company on April 21, 2010.

EX-99.1

Exhibit 99.1

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

GREEN BANKSHARES POSTS FIRST QUARTER EARNINGS OF $1.9 MILLION

GREENEVILLE, Tenn. (April 21, 2010) – Green Bankshares, Inc. (NASDAQ:GRNB), the holding company for GreenBank, today reported net income available to common shareholders of $1,946,000 for the first quarter of 2010 compared with a net loss available to common shareholders of $76,000 for the fourth quarter of 2009 and net income available to common shareholders of $3,548,000 in the year-earlier quarter.  Net income available to common shareholders was $0.15 per diluted share compared with a net loss of $0.01 per diluted share for the fourth quarter of 2009 and net income of $0.27 per diluted share in the first quarter of 2009.

Excluding preferred stock dividends paid and the accretion of discount on common stock warrants issued to the U.S. Treasury, the Company reported net income of $3,196,000 for the first quarter of 2010 compared with net income of $1,174,000 for the fourth quarter of 2009 and $4,780,000 in the year-earlier quarter.

Other highlights for the quarter included:

Improving credit quality ($000):

	1Q10			4Q09			3Q09			2Q09			1Q09
Net loan charge-offs	$	3,882		$	6,437		$	18,436		$	23,281		$	742
New non-accrual loans added	$	14,442		$	31,111		$	47,931		$	57,292		$	58,073
Reserves to total loans		2.52	%		2.45	%		2.39	%		2.30	%		2.19	%
Non-performing assets	$	135,366		$	132,726		$	125,091		$	129,177		$	121,272

·   Net loan charge-offs declined as further signs of economic stabilization in the Company's markets continued through the first quarter of 2010.

·   Non-performing assets (NPAs) rose modestly during the first quarter of 2010 while the level of new loans added to non-accrual continued to decline.

·   On average, all NPAs have been written down by 28%.

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GRNB Reports First Quarter Results

Page 2

April 21, 2010

The following table reflects the changes in NPA balances from December 31, 2009 through March 31, 2010:

(dollars in thousands)	Non-Accrual Loans			OREO			Past Due > 90 days		Total
December 31, 2009	$	75,411		$	57,168		$	147	$	132,726
Loan foreclosures		(18,540	)		18,540			n/a		n/a
Gross loan charge-offs		(4,733	)		n/a			n/a		(4,733	)
New non-accrual loans		14,442			n/a			n/a		14,442
Reduction of non-accrual loans		(3,109	)		n/a			n/a		(3,109	)
OREO sales proceeds		n/a			(3,453	)		n/a		(3,453	)
OREO write-downs, net		n/a			(509	)		n/a		(509	)
Change in past due > 90 days		n/a			n/a			2		2
March 31, 2010	$	63,471		$	71,746		$	149	$	135,366

Strong capital:

Consolidated:	1Q10			4Q09			3Q09			2Q09			1Q09
Tangible common book value per share	$	11.71		$	11.44		$	11.47		$	11.88		$	11.95
Tangible common equity to tangible assets ratio		6.03	%		5.77	%		5.42	%		5.98	%		5.95	%
Bank Regulatory Ratios:
Tier 1 leverage ratio		11.55	%		10.70	%		10.49	%		10.85	%		11.63	%
Tier 1 risk-based capital ratio		14.06	%		13.61	%		13.17	%		13.45	%		13.71	%
Total risk-based capital ratio		15.33	%		14.87	%		14.43	%		14.72	%		14.97	%

·   All capital ratios continued to improve over the last three quarters (please refer to the non-GAAP measurement reconciliation on page 5).  As indicated in the minutes of the Federal Open Market Committee Meeting, the recession began reaching the bottom late in the second quarter of 2009 and remained at depressed levels throughout the third quarter of 2009 until modest signs of economic improvement began to appear in the fourth quarter of 2009.  These economic conditions also were reflected in the Company's capital ratios as indicated above.

Increasing net interest income/margin:

($000's omitted)	1Q10			4Q09			1Q09
Net interest income	$	21,659		$	20,578		$	19,429
Net interest margin		3.90	%		3.37	%		3.23	%
Average earning assets	$	2,271,550		$	2,445,872		$	2,462,759

·   Net interest income and net interest margin, including loan interest reversals of $282,519 for the first quarter of 2010, continued to improve from both the fourth and first quarter 2009 levels.

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GRNB Reports First Quarter Results

Page 3

April 21, 2010

Stephen M. Rownd, newly appointed Chairman and Chief Executive Officer, commented, “The solid underpinnings of our company's core earnings potential are beginning to become more evident as we emerge from this recessionary cycle.  After having recently visited with our management and bankers in all three of our operating regions, I am impressed by the caliber of our team and their drive and determination to move GreenBank forward in these challenging times.  I am cautiously optimistic that with the further hard work and dedication of our employees and management, we will continue to make further strides in improving the Company's performance as this year continues to unfold."

The following information graphically displays the consolidated loan portfolio by purpose code as of March 31, 2010:

The following is a breakdown of the Company's commercial real estate portfolio by purpose code as of March 31, 2010.

(Dollars in thousands)	March 31, 2010		Dec. 31, 2009		March 31, 2009
Commercial Real Estate Portfolio
Acquisition & development	$	182,181	$	185,087	$	255,198
Lot warehouse		55,499		66,104		78,957
Commercial 1-4 family construction		69,328		70,434		141,161
Total speculative 1-4 family		307,008		321,625		475,316
Commercial vacant land		101,218		101,679		101,796
Commercial construction non-owner occupied		156,970		164,887		164,052
Commercial construction owner occupied		27,614		28,213		59,361
Consumer residential construction		14,701		19,073		26,220
Total construction and development		300,503		313,852		351,429
Non-owner occupied commercial real estate		395,638		397,028		389,701
Total commercial real estate	$	1,003,149	$	1,032,505	$	1,216,446

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GRNB Reports First Quarter Results

Page 4

April 21, 2010

Non-interest income totaled approximately $7.7 million for the first quarter of 2010 compared with $8.1 million on a linked quarter basis and $6.9 million for the first quarter of 2009.  Non-interest income for the fourth quarter of 2009 included approximately $238,000 of net securities gains.  Deposit service charges increased $584,000 from first quarter 2009 levels due to the continued success of the Company's High Performance Checking product and its strong attraction to new customers.  The decline in deposit service charges from the fourth quarter of 2009 reflected historical seasonal patterns relating to the impact of income tax refunds on customer account balances.

Non-interest expenses totaled approximately $20.5 million in the first quarter of 2010 and were relatively flat compared with the fourth quarter of 2009 despite FICA and other employment tax increases that seasonally impact non-interest expense levels.  The temporary increases associated with payroll taxes were partially offset by a reduction of $642,000 in losses incurred on the disposition of OREO properties versus the fourth quarter of 2009.  Compared with the first quarter of 2009, non-interest expenses increased $2.7 million or 15%.  Although payroll-related costs declined approximately $345,000, this decrease was more than offset by higher product advertising costs of $53 4,000, increased losses on the disposition of OREO property of $428,000, and elevated collection and repossession costs of almost $990,000.

Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.570 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 comp any.

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, 2009, and include, but are not limited to, (1) deterioration in the financial condition of borrowers resu lting in significant increases in loan losses and provisions for those losses; (2) continuation of the historically low short-term interest rate environment; (3) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (4) increased competition with other financial institutions in the markets that GreenBank serves; (5) greater than anticipated deterioration or lack of sustained growth in the national or local economies; (6) rapid fluctuations or unanticipated changes in interest rates; (7) the impact of governmental restrictions on entities participating in the Capital Purchase Program of the United States Department of the Treasury; (8) changes in state and federal legislation, regulations or policies applicable to banks or other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy and (9) the loss of key personnel. 
60;The Company undertakes no obligation to update forward-looking statements.

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GRNB Reports First Quarter Results

Page 5

April 21, 2010

GREEN BANKSHARES, INC.

Reconciliation of Non-GAAP Measures Presented in Earnings Release

(Dollars in thousands)

	1Q10			4Q09			3Q09			2Q09			1Q09
Total shareholders' equity	$	230,189		$	226,769		$	227,388		$	233,192		$	384,474
Less:
Goodwill		--			--			--			--			(143,389	)
Core deposit and other intangibles		(8,684	)		(9,335	)		(9,981	)		(10,629	)		(11,281	)
Preferred stock		(67,081	)		(66,735	)		(66,388	)		(66,041	)		(65,694	)
Tangible common equity	$	154,424		$	150,699		$	151,019		$	156,522		$	164,110
Total assets	$	2,569,732		$	2,619,139		$	2,794,217		$	2,629,834		$	2,795,839
Less:
Goodwill		--			--			--			--			(143,389	)
Core deposit and other intangibles		(8,684	)		(9,335	)		(9,981	)		(10,629	)		(11,281	)
Total tangible assets	$	2,561,048		$	2,609,804		$	2,784,236		$	2,619,205		$	2,641,169

Use of Non-GAAP financial measures

The above table presents computations and other financial information excluding our core deposit intangible, preferred stock and for the first quarter of 2009, goodwill (non-GAAP).  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.

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GRNB Reports First Quarter Results

Page 6

April 21, 2010

GREEN BANKSHARES, INC.

Unaudited Financial Highlights

(In thousands, except per share amounts)

	Three Months Ended
	March 31, 2010		Dec. 31, 2009			March 31, 2009
Interest income	$	31,892	$	33,434		$	35,380
Interest expense		10,233		12,846			15,951
Net interest income		21,659		20,578			19,429
Provision for loan losses		3,889		6,402			985
Net interest income after provision for loan losses		17,770		14,176			18,444
Non-interest income		7,686		8,134			6,943
Non-interest expense		20,546		20,477			17,831
Income before income taxes		4,910		1,833			7,556
Income tax provision		1,714		659			2,776
Income		3,196		1,174			4,780
Preferred stock dividends and related cost		1,250		1,250			1,232
Net income (loss) available to common shareholders	$	1,946	$	(76	)	$	3,548
Comprehensive income	$	4,166	$	120		$	5,668
Earnings (loss) per share: Basic	$	0.15	$	(0.01	)	$	0.27
Diluted	$	0.15	$	(0.01	)	$	0.27
Weighted average shares: Basic		13,082		13,070			13,063
Diluted		13,082		13,070			13,142
Dividends declared per share	$	0.00	$	0.00		$	0.13
	March 31, 2010		Dec. 31, 2009			March 31, 2009
Total assets	$	2,569,732	$	2,619,139		$	2,795,839
Cash and cash equivalents		177,541		210,494			77,831
Investment and other securities		198,066		173,617			206,948
Loans, net of unearned interest		1,994,039		2,043,807			2,244,848
Allowance for loan losses		50,167		50,161			49,054
Deposits		2,037,865		2,084,096			2,038,520
Shareholders' equity		230,189		226,769			384,474
Common shareholders' equity 1		163,108		160,034			318,780
Tangible common shareholders' equity 2		154,424		150,699			164,110
Common book value per share 1		12.36		12.15			23.69
Tangible common book value per share 2		11.71		11.44			11.95

1Common shareholders' equity is shareholders' equity less preferred stock.

2Tangible common shareholders' equity is shareholders' equity less goodwill, intangible assets and preferred stock.

-END-

GREEN BANKSHARES, INC.

Consolidated Balance Sheets

March 31, 2010, December 31, 2009 and March 31, 2009

(Dollars in thousands)

	(Unaudited)						(Unaudited)
	March 31,			December 31,			March 31,
	2010			2009*				2009
ASSETS
Cash and due from banks	$	176,469		$	206,701		$	71,804
Federal funds sold		1,072			3,793			6,027
Cash and cash equivalents		177,541			210,494			77,831
Interest earning deposits in other banks		11,000			11,000			-
Securities available-for-sale ("AFS")		173,716			147,724			193,271
Securities held-to-maturity (with a market value of $628, $638 and $595
on March 31, 2010, December 31, 2009 and March 31, 2009)		616			626			647
FHLB and other stock, at cost		12,734			12,734			13,030
Loans held for sale		590			1,533			595
Loans, net of unearned income		1,994,039			2,043,807			2,244,848
Allowance for loan losses		(50,167	)		(50,161	)		(49,054	)
Other real estate owned and repossessed assets		71,746			57,168			12,651
Bank premises and equipment, net		81,204			81,818			84,639
Cash surrender value of life insurance		30,542			30,277			29,844
Goodwill		-			-			143,389
Core deposit and other intangibles		8,684			9,335			11,281
Other assets		57,487			62,784			32,867
Total assets	$	2,569,732		$	2,619,139		$	2,795,839
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	166,369		$	177,602		$	168,178
Interest-bearing deposits		1,870,097			1,899,910			1,707,625
Brokered deposits		1,399			6,584			162,717
Total deposits		2,037,865			2,084,096			2,038,520
Federal funds purchased		-			-			-
Repurchase agreements		23,830			24,449			31,018
FHLB advances and notes payable		171,919			171,999			229,252
Subordinated debentures		88,662			88,662			88,662
Accrued interest payable and other liabilities		17,267			23,164			23,913
Total liabilities		2,339,543			2,392,370			2,411,365
SHAREHOLDERS' EQUITY
Preferred stock: no par value, 1,000,000 shares authorized;
72,278, 72,278 and 72,278 shares outstanding		67,081			66,735			65,694
Common stock: $2 par value, 20,000,000 shares authorized;
13,192,875, 13,171,474 and 13,176,681 shares outstanding		26,386			26,343			26,353
Common stock warrants		6,934			6,934			6,934
Additional paid in capital		188,423			188,310			187,783
Retained earnings (deficit)		(59,794	)		(61,742	)		97,485
Accumulated other comprehensive income		1,159			189			225
Total shareholders' equity		230,189			226,769			384,474
Total liabilities & shareholders' equity	$	2,569,732		$	2,619,139		$	2,795,839
* Derived from Audited Consolidated Financial Statements.

GREEN BANKSHARES, INC.

Consolidated Statements of Income and Comprehensive Income

Three Months Ended March 31, 2010, December 31, 2009 and March 31, 2009

(Unaudited)

(Dollars in thousands except share and per share data)

	Three Months Ended
	March 31,		December 31,			March 31,
	2010		2009			2009
Interest income:
Interest and fees on loans	$	30,060	$	31,480		$	32,645
Taxable securities		1,288		1,303			2,220
Nontaxable securities		312		311			320
FHLB and other stock		138		137			150
Federal funds sold and other		94		193			45
Total interest income		31,892		33,424			35,380
Interest expense:
Deposits		8,061		10,124			12,653
Federal funds purchased and repurchase agreements		6		7			9
FHLB advances and notes payable		1,694		2,229			2,443
Subordinated debentures		472		486			846
Total interest expense		10,233		12,846			15,951
Net interest income		21,659		20,578			19,429
Provision for loan losses		3,889		6,402			985
Net interest income after provision for loan losses		17,770		14,176			18,444
Non-interest income:
Service charges on deposit accounts		5,940		6,141			5,356
Other charges and fees		356		540			449
Trust and investment services income		582		505			388
Mortgage banking income		118		91			55
Other income		690		619			695
Securities gains (losses), net
Realized gains (losses), net		-		482			-
Other-than-temporary impairment		-		(946	)		-
Less non-credit portion recognized in other comprehensive income		-		702			-
Total securities gains (losses), net		-		238			-
Total non-interest income		7,686		8,134			6,943
Non-interest expense:
Employee compensation		7,665		7,540			7,692
Employee benefits		977		785			1,295
Occupancy expense		1,699		1,695			1,787
Equipment expense		708		694			742
Computer hardware/software expense		824		793			637
Professional services		607		676			529
Advertising		598		473			64
OREO maintenance expense		445		411			143
Collection and repossession expense		1,287		1,255			298
Loss on OREO and repossessed assets		509		1,151			81
FDIC insurance		851		891			700
Core deposit and other intangible amortization		651		646			804
Other expenses		3,725		3,467			3,059
Total non-interest expense		20,546		20,477			17,831
Income before income taxes		4,910		1,833			7,556
Income taxes provision (benefit)		1,714		659			2,776
Net income		3,196		1,174			4,780
Preferred stock dividends and accretion of discount on warrants		1,250		1,250			1,232
Net income (loss) available to common shareholders	$	1,946	$	(76	)	$	3,548
Comprehensive income	$	4,166	$	120		$	5,668
Per share of common stock:
Basic earnings (loss)	$	0.15	$	(0.01	)	$	0.27
Diluted earnings (loss)	$	0.15	$	(0.01	)	$	0.27
Dividends	$	0.00	$	0.00		$	0.13
Weighted average shares outstanding:
Basic		13,082,347		13,070,216			13,062,881
Diluted(1)		13,082,347		13,070,216			13,141,840
(1) Diluted weighted average shares outstanding for the three months ended March 31, 2010 and December 31, 2009 excludes 90,380 and 101,258 shares, respectively, because they are anti-dilutive.

GREEN BANKSHARES, INC.

Consolidated Financial Highlights

(UNAUDITED)

(Dollars in thousands except share and per share data)

	March 31,			December 31,			%
	2010			2009			Change
Financial Condition Data:
Assets	$	2,569,732		$	2,619,139			-1.89	%
Loans, net of unearned interest		1,994,039			2,043,807			-2.44	%
Cash and investments		375,607			382,578			-1.82	%
Federal funds sold		1,072			3,793			-71.74	%
Deposits		2,037,865			2,084,096			-2.22	%
FHLB advances and notes payable		171,919			171,999			-0.05	%
Subordinated debentures		88,662			88,662			0.00	%
Repurchase agreements		23,830			24,449			-2.53	%
Shareholders' equity		230,189			226,769			1.51	%
Common shareholders' equity (1)		163,108			160,034			1.92	%
Tangible common shareholders' equity (2)		154,424			150,699			2.47	%
Tangible shareholders' equity (3)		221,505			217,434			1.87	%
Ratios:
Common book value per share (1)	$	12.36		$	12.15			1.73	%
Tangible common book value per share (2)	$	11.71		$	11.44			2.36	%
Total tangible equity to tangible assets (3)(4)		8.65	%		8.33	%		3.81	%
Tangible common equity to tangible assets (2)(4)		6.03	%		5.77	%		4.42	%
Average equity to average assets		8.94	%		11.09	%		-19.39	%
(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
	March 31,		December 31,
	2010		2009			% Change
Operating Data:
Total interest income	$	31,892	$	33,424			-4.58	%
Total interest expense		10,233		12,846			-20.34	%
Net interest income		21,659		20,578			5.25	%
Provision for loan losses		3,889		6,402			-39.25	%
Net interest income after provision for loan losses		17,770		14,176			25.35	%
Non-interest income		7,686		8,134			-5.51	%
Non-interest expense		20,546		20,477			0.34	%
Income (loss) before income taxes		4,910		1,833			167.87	%
Income tax expense (benefit)		1,714		659			160.09	%
Net income (loss)		3,196		1,174			172.23	%
Preferred stock dividend and accretion of discount on warrants		1,250		1,250			0.00	%
Net income (loss) available to common shareholders	$	1,946	$	(76	)		2660.53	%
Comprehensive income (loss)	$	4,166	$	120			3371.67	%
Per Share of Common Stock:
Basic earnings (loss)	$	0.15	$	(0.01	)		-1600.00	%
Diluted earnings (loss)	$	0.15	$	(0.01	)		-1600.00	%
Dividends	$	0.00	$	0.00			0.00	%
Weighted Average Shares Outstanding:
Basic		13,082,347		13,070,216
Diluted		13,082,347		13,070,216

	Three Months Ended
	March 31,			December 31,			March 31,
	2010			2009			2009
Key Financial Ratios:
Return on average assets		0.31	%		-0.01	%		0.51	%
Return on average shareholders' equity		3.43	%		-0.13	%		3.74	%
Return on average common shareholders' equity (1)		4.83	%		-0.19	%		4.52	%
Return on average common tangible shareholders' equity (2)		5.11	%		-0.20	%		8.84	%
Interest rate spread		3.81	%		3.26	%		3.01	%
Net interest margin		3.90	%		3.37	%		3.23	%
(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.

	March 31,			December 31,			March 31,
	2010			2009			2009
Asset Quality Ratios:
Nonperforming loans as a percentage of total loans,
net of unearned income		3.19	%		3.70	%		4.84	%
Nonperforming assets as a percentage of total assets		5.27	%		5.07	%		4.34	%
Allowance for loan losses as a percentage of total loans,
net of unearned income		2.52	%		2.45	%		2.19	%
Allowance for loan losses as a percentage of
nonperforming loans		78.85	%		66.39	%		45.16	%
Net charge-offs to average total loans, net of
unearned income		0.19	%		2.25	%		0.03	%

GREEN BANKSHARES, INC.

Consolidated Financial Highlights

March 31, 2010

(UNAUDITED)

Nonperforming Assets and Net Charge-offs							Asset Quality Ratios
As of and for the three months ended March 31, 2010	Bank		Other		Total		As of and for the three months ended March 31, 2010	Bank			Other			Consolidated
Loans past due 90 days and still accruing	$	137	$	12	$	149	Nonperforming loans as a percentage of total loans, net of unearned income		3.19	%		1.23	%		3.19	%
Nonaccrual loans		62,955		516		63,471	Nonperforming assets as a percentage of total assets		5.25	%		1.37	%		5.27	%
Other real estate owned and repossessed assets		71,586		160		71,746	Allowance for loan losses as a percentage of total loans, net of unearned income		2.36	%		8.13	%		2.52	%
Total nonperforming assets	$	134,678	$	688	$	135,366	Allowance for loan losses as a percentage of nonperforming loans		73.98	%		661.74	%		78.85	%
							YTD net charge-offs to average total loans, net of unearned income		0.17	%		1.25	%		0.19	%
YTD net charge-offs	$	3,345	$	537	$	3,882
As of and for the three months ended March 31, 2009	Bank		Other		Total		As of and for the three months ended March 31, 2009	Bank			Other			Consolidated
Loans past due 90 days and still accruing	$	4,058	$	-	$	4,058	Nonperforming loans as a percentage of total loans, net of unearned income		4.83	%		2.05	%		4.84	%
Nonaccrual loans		103,711		852		104,563	Nonperforming assets as a percentage of total assets		4.31	%		1.98	%		4.34	%
Other real estate owned and repossessed assets		12,536		115		12,651	Allowance for loan losses as a percentage of total loans, net of unearned income		2.05	%		8.09	%		2.19	%
Total nonperforming assets	$	120,305	$	967	$	121,272	Allowance for loan losses as a percentage of nonperforming loans		42.41	%		393.66	%		45.16	%
							YTD net charge-offs to average total loans, net of unearned income		0.01	%		1.29	%		0.03	%
YTD net charge-offs	$	214	$	528	$	742
As of and for the year ended December 31, 2009	Bank		Other		Total		As of and for the year ended December 31, 2009	Bank			Other			Consolidated
Loans past due 90 days and still accruing	$	147	$	-	$	147	Nonperforming loans as a percentage of total loans, net of unearned income		3.69	%		1.50	%		3.70	%
Nonaccrual loans		74,761		650		75,411	Nonperforming assets as a percentage of total assets		5.04	%		2.02	%		5.07	%
Other real estate owned and repossessed assets		56,799		369		57,168	Allowance for loan losses as a percentage of total loans, net of unearned income		2.30	%		8.05	%		2.45	%
Total nonperforming assets	$	131,707	$	1,019	$	132,726	Allowance for loan losses as a percentage of nonperforming loans		62.29	%		538.31	%		66.39	%
							Net charge-offs to average total loans, net of unearned income		2.15	%		5.88	%		2.25	%
Net charge-offs	$	46,394	$	2,502	$	48,896

GREEN BANKSHARES, INC.

Condensed Average Balances, Interest Rates and Yields

March 31, 2010

	Three Months Ended
	March 31,
	2010							2009
	Average				Average			Average				Average
	Balance		Interest		Rate			Balance		Interest		Rate
Interest-earning assets:
Loans(1)(2)		1,954,136		30,080		6.24	%		2,175,543		32,655		6.09	%
Investment securities (2)		169,020		1,906		4.57	%		216,757		2,862		5.35	%
Other short-term investments		148,394		94		0.26	%		70,459		45		0.26	%
Total interest-earning assets		2,271,550		32,080		5.73	%		2,462,759		35,562		5.86	%
Non-interest earning assets		306,586							384,013
Total assets		2,578,136							2,846,772
Interest-bearing liabilities:
Deposits:
Interest checking, money market and savings		941,888		2,398		1.03	%		623,708		1,852		1.20	%
Time deposits		940,388		5,663		2.44	%		1,296,277		10,799		3.38	%
Total interest bearing-deposits		1,882,276		8,061		1.74	%		1,919,985		12,651		2.67	%
Securities sold under repurchase and short-term borrowings		23,615		6		0.10	%		33,076		9		0.11	%
Notes payable		171,946		1,694		4.00	%		229,282		2,445		4.32	%
Subordinated debentures		88,662		472		2.16	%		88,662		846		3.87	%
Total interest-bearing liabilities		2,166,499		10,233		1.92	%		2,271,005		15,951		2.85	%
Non-interest bearing liabilities:
Demand Deposits		163,173							168,109
Other Liabilities		18,098							22,734
Total non-interest bearing liabilities		181,271							190,843
Total liabilities		2,347,770							2,461,848
Shareholders' equity		230,366							384,924
Total liabilities & shareholders' equity		2,578,136							2,846,772
Net interest income				21,847							19,611
Interest rate spread						3.81	%						3.01	%
Net yield on interest-earning assets (net interest margin)						3.90	%						3.23	%

(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

March 31, 2010

(UNAUDITED)

	March 31, 2010						December 31, 2009
Loans	Balance			%			Balance			%			% Change
Commercial	$	268,834			13.38	%	$	274,346			13.33	%		-2.01	%
Commercial real estate		1,271,094			63.28	%		1,306,398			63.46	%		-2.70	%
Residential real estate		386,664			19.25	%		392,365			19.06	%		-1.45	%
Consumer		79,476			3.96	%		83,382			4.05	%		-4.68	%
Other		2,709			0.13	%		2,117			0.10	%		27.96	%
Total loans		2,008,777			100.00	%		2,058,608			100.00	%		-2.42	%
Less: Unearned income		(14,738	)					(14,801	)
Loans, net of unearned income	$	1,994,039					$	2,043,807
Loan Balances by Geographical Region and Operating Subsidiaries
	March 31, 2010						December 31, 2009
	Loan			% to			Loan			% to
	Balance			Total Loans			Balance			Total Loans			% Change
Northeastern Tennessee Region(1)	$	517,105			25.93	%	$	521,145			25.50	%		-0.78	%
East Tennessee Region		685,808			34.39	%		695,533			34.03	%		-1.40	%
Middle Tennessee Region		748,126			37.52	%		783,676			38.34	%		-4.54	%
GCB Acceptance Corporation		19,099			0.96	%		19,143			0.94	%		-0.23	%
Superior Financial Services, Inc.		23,901			1.20	%		24,310			1.19	%		-1.68	%
Loans, net of unearned income	$	1,994,039			100.00	%	$	2,043,807			100.00	%		-2.44	%
(1)Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina

	March 31, 2010					December 31, 2009
Deposits	Balance		%			Balance		%			% Change
Non-interest bearing demand	$	166,369		8.16	%	$	177,602		8.52	%		-6.32	%
Interest bearing demand		669,243		32.84	%		645,462		30.97	%		3.68	%
Money market and savings		290,313		14.25	%		278,157		13.35	%		4.37	%
Retail time		552,366		27.11	%		590,020		28.31	%		-6.38	%
Jumbo time		359,574		17.64	%		392,855		18.85	%		-8.47	%
Total	$	2,037,865		100.00	%	$	2,084,096		100.00	%		-2.22	%
Deposit Balances by Geographical Region
	March 31, 2010					December 31, 2009
	Balance		%			Balance		%			% Change
Northeastern Tennessee Region(1)	$	747,586		36.68	%	$	751,972		36.08	%		-0.58	%
East Tennessee Region		322,361		15.82	%		322,791		15.49	%		-0.13	%
Middle Tennessee Region		967,918		47.50	%		1,009,333		48.43	%		-4.10	%
Total	$	2,037,865		100.00	%	$	2,084,096		100.00	%		-2.22	%
(1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina