Green Bankshares (GRNB) 8-K Green Bankshares Reports Second Quarter Net Income

Exhibit 99.1

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

GREEN BANKSHARES REPORTS SECOND QUARTER NET INCOME

OF $1,561,000 OR $0.12 PER DILUTED SHARE

GREENEVILLE, Tenn. (July 21, 2010) – Green Bankshares, Inc. (NASDAQ:GRNB), the holding company for GreenBank, today reported net income available to common shareholders of $1,561,000 for the second quarter of 2010 compared with net income available to common shareholders of $1,946,000 for the first quarter of 2010 and a net loss available to common shareholders of $151,400,000 for the second quarter of 2009.  The net loss for the second quarter of 2009 primarily reflected a non-cash, one-time goodwill impairment charge totaling $143,389,000; excluding this impairment charge, the net operating loss for the year-earlier quarter was $13,986,000 (please refer to the non-GAAP measurement reconciliation on page 5).  For the six months ended June 30, 2010, net income available to common shareholders totaled $3,507,00 0 compared with a net loss available to common shareholders of $10,438,000 for the same period a year ago after excluding the onetime, non-cash, after-tax goodwill impairment charge of $137,414,000.

On a diluted per share basis, net income available to common shareholders totaled $0.12 for the second quarter of 2010 and $0.15 for the first quarter of 2010 compared with a net loss available to common shareholders of $1.07 after excluding the impact of the non-cash after-tax goodwill impairment charge of $10.51 for the second quarter of 2009.  On a year-to-date basis, diluted per share net income available to common shareholders totaled $0.27 compared with a net loss available to common shareholders of $0.80 per diluted share for the first six months of 2009 after excluding the impact of the non-cash, after-tax goodwill impairment charge of $10.52.

Excluding preferred stock dividends paid to the U.S. Treasury and the accretion of discount on common stock warrants issued to the U.S. Treasury, the Company reported net income of $2,811,000 for the second quarter of 2010 and $6,007,000 for the six months ended June 30, 2010, compared with a net loss of $150,150,000 and $145,370,000, respectively, for the comparable periods in 2009.

Other highlights of the quarter included improving capital levels, higher year-over-year net interest income and generally stable credit quality conditions.

Improving capital levels:

Consolidated:	2Q10			1Q10			4Q09			3Q09			2Q09
Tangible common book value per share	$	11.95		$	11.71		$	11.44		$	11.47		$	11.88
Tangible common equity to assets ratio		6.25	%		6.03	%		5.77	%		5.42	%		5.98	%
Bank Regulatory Ratios:
Tier 1 leverage ratio		11.86	%		11.55	%		10.70	%		10.49	%		10.85	%
Tier 1 risk-based capital ratio		14.73	%		14.06	%		13.61	%		13.17	%		13.45	%
Total risk-based capital ratio		15.99	%		15.33	%		14.87	%		14.43	%		14.72	%

·   All capital ratios continued to improve as profitability of the Company modestly improves given the lingering stress apparent in this phase of the economic cycle (see the non-GAAP measurement reconciliation on page 5 regarding tangible equity and book value per share).

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GRNB Reports Second Quarter Results

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July 21, 2010

Net interest income:

(dollars in thousands)	2Q10			1Q10			4Q09			3Q09			2Q09
Net interest income	$	21,473		$	21,659		$	20,578		$	20,338		$	20,180
Net interest margin		3.86	%		3.90	%		3.37	%		3.33	%		3.43	%
Average earning assets	$	2,248,240		$	2,271,550		$	2,445,872		$	2,442,977		$	2,382,377

·   Both net interest income and the net interest margin were negatively affected during the second quarter of 2010 by loan interest reversals totaling approximately $610,000 as $22,415,000 of loans were moved to non-accrual status.

Credit quality:

Summary:

(dollars in thousands)	2Q10			1Q10			4Q09			3Q09			2Q09
Net loan charge-offs	$	4,868		$	3,882		$	6,437		$	18,436		$	23,281
New non-accrual loans added	$	22,415		$	14,442		$	31,111		$	47,931		$	57,292
Reserves to total loans		2.60	%		2.52	%		2.45	%		2.39	%		2.30	%
Non-performing assets	$	141,915		$	135,366		$	132,726		$	125,091		$	129,177

Changes in non-performing assets:

(dollars in thousands)	Non-Accrual Loans			OREO			Past Due > 90 days		Total (1)
March 31, 2010	$	63,471		$	71,746		$	149	$	135,366
Loan foreclosures		(12,338	)		12,338			n/a		n/a
Gross loan charge-offs		(5,316	)		n/a			n/a		(5,316	)
New non-accrual loans		22,415			n/a			n/a		22,415
Reduction of non-accrual loans		(3,890	)		n/a			n/a		(3,890	)
OREO sales proceeds		n/a			(6,270	)		n/a		(6,270	)
OREO write-downs, net		n/a			(882	)		n/a		(882	)
Change in past due > 90 days		n/a			n/a			492		492
June 30, 2010	$	64,342		$	76,932		$	641	$	141,915

(1)    On average, all non-performing assets have been written down by 26%.

Loan portfolio migration:

(Dollars in thousands)	2Q10		1Q10		2Q09
Commercial real estate portfolio:
Acquisition & development	$	176,152	$	182,181	$	228,680
Lot warehouse		52,520		55,499		75,909
Commercial 1-4 family construction		49,539		69,328		109,319
Total speculative 1-4 family		278,211		307,008		413,908
Commercial vacant land		100,163		101,218		103,219
Commercial construction non-owner occupied		123,330		156,970		166,486
Commercial construction owner occupied		6,519		27,614		56,721
Consumer residential construction		13,511		14,701		27,267
Total construction and development		243,523		300,503		353,693
Non-owner occupied commercial real estate		434,238		395,638		394,586
Total commercial real estate	$	955,972	$	1,003,149	$	1,162,187

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GRNB Reports Second Quarter Results

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July 21, 2010

Stephen M. Rownd, Chairman and Chief Executive Officer, commented, "While the outlook for economic recovery remains uncertain, we have taken a number of strategic steps that include the continued reduction in our construction and development portfolios, as indicated in the foregoing loan migration table, coupled with accelerated problem asset resolution through the segregation of staffing in our special assets area and by transferring additional resources into this area.  At June 30, 2010, our loan loss reserves to total loans was 2.60% and our loan loss reserves were approximately 2.8 times annualized net charge-offs.  Our non-performing asset and charge-off levels may remain elevated over the next few quarters based on trends in general economic conditions and as we realize the results of our strategic actions."

The following information graphically displays the consolidated loan portfolio by purpose code as of June 30, 2010:

Non-interest income totaled approximately $8.8 million during the second quarter of 2010, rising 14% on a linked quarter basis and up 29% compared with the second quarter of 2009.  During the second quarter of 2010 and 2009, the Company reported net Other-Than-Temporary Impairment (OTTI) charges taken on securities of $93,000 and $733,000, respectively.  For the first six months of 2010, non-interest income, including OTTI charges, totaled almost $16.4 million compared with $13.8 million for the same period a year ago, an increase of 20%.  Excluding year-to-date OTTI charges of $93,000 in 2010 and $733,000 in 2009, non-interest income improved 14% in the first six months of 2010.  The principal contributors to both the quarterly and year-to-date improvements in non-interest income were higher se rvice charge revenues on deposits together with increased annuity sales activity.  The ongoing success of GreenBank's High Performance Checking product added 3,562 net new checking account customers during the second quarter of 2010 for a new account opening ratio of 2.02 new accounts opened for each account closed.

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GRNB Reports Second Quarter Results

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July 21, 2010

Non-interest expenses totaled approximately $21.3 million for the second quarter of 2010, increasing less than 4% from the first quarter of 2010.  Excluding the one-time, non-cash, goodwill impairment charge of $143.4 million recorded during the second quarter of 2009, non-interest expenses declined 15% from the year-earlier quarter.  Driving the second quarter 2010 increase in non-interest expenses were normal non-executive compensation increases along with annuity sales commissions; higher advertising costs associated with a proactive program implemented to solicit customers to participate in the "opt-in" provisions of the Bank's overdraft program; higher FDIC insurance expenses and increased losses on the disposition of OREO-related properties.

Greeneville, Tennessee-based Green Bankshares, Inc., with total assets of approximately $2.5 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.

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 resulting 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 levels of non-performing and repossessed assets and the ability to resolve these may result in future losses; (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.  The Company undertakes no obligation to update forward-looking statements.

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GRNB Reports Second Quarter Results

Page 5

July 21, 2010

GREEN BANKSHARES, INC.

Reconciliation of Non-GAAP Measures Presented in Earnings Release

(Dollars in thousands)

	Three Months Ended							Six Months Ended
	June 30, 2010		March 31, 2010		June 30, 2009			June 30, 2010		June 30, 2009
Total non-interest expense	$	21,274	$	20,546	$	168,410		$	41,820	$	186,241
Goodwill impairment charge		--		--		(143,389	)		--		(143,389	)
Operating expenses	$	21,274	$	20,546	$	25,021		$	41,820	$	42,852
Net income (loss) available to common shareholders	$	1,561	$	1,946	$	(151,400	)	$	3,507	$	(147,852	)
Goodwill impairment charge, net of tax		--		--		137,414			--		137,414
Net operating income (loss)	$	1,561	$	1,946	$	(13,986	)	$	3,507	$	(10,438	)
Per Diluted Share:
Net income (loss) available to common shareholders	$	0.12	$	0.15	$	(11.58	)	$	0.27	$	(11.32	)
Goodwill impairment charge,  net of tax		--		--		10.51			--		10.52
Net operating income (loss)	$	0.12	$	0.15	$	(1.07	)	$	0.27	$	(0.80	)

	2Q10			1Q10			4Q09			3Q09			2Q09
Total shareholders' equity	$	233,150		$	230,189		$	226,769		$	227,388		$	233,192
Less:
Core deposit and other intangibles		(8,044	)		(8,684	)		(9,335	)		(9,981	)		(10,629	)
Preferred stock		(67,428	)		(67,081	)		(66,735	)		(66,388	)		(66,041	)
Tangible common equity	$	157,678		$	154,424		$	150,699		$	151,019		$	156,522
Total assets	$	2,529,332		$	2,569,732		$	2,619,139		$	2,794,217		$	2,629,834
Less:
Core deposit and other intangibles		(8,044	)		(8,684	)		(9,335	)		(9,981	)		(10,629	)
Total tangible assets	$	2,521,288		$	2,561,048		$	2,609,804		$	2,784,236		$	2,619,205

Use of Non-GAAP financial measures

The above table presents computations and other financial information excluding the goodwill impairment charge incurred by the Company in the second quarter of 2009 (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.

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GRNB Reports Second Quarter Results

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July 21, 2010

GREEN BANKSHARES, INC.

Unaudited Financial Highlights

(In thousands, except per share amounts)

	Three Months Ended							Six Months Ended
	June 30, 2010		March 31, 2010		June 30, 2009			June 30, 2010		June 30, 2009
Interest income	$	31,304	$	31,892	$	34,856		$	63,196	$	70,236
Interest expense		9,831		10,233		14,676			20,064		30,627
Net interest income		21,473		21,659		20,180			43,132		39,609
Provision for loan losses		4,749		3,889		24,384			8,638		25,369
Net interest income (loss) after provision for loan losses		16,724		17,770		(4,204	)		34,494		14,240
Non-interest income		8,771		7,686		6,808			16,457		13,751
Non-interest expense		21,274		20,546		168,410			41,820		186,241
Income (loss) before income taxes		4,221		4,910		(165,806	)		9,131		(158,250	)
Income tax provision (benefit)		1,410		1,714		(15,656	)		3,124		(12,880	)
Income (loss)		2,811		3,196		(150,150	)		6,007		(145,370	)
Preferred stock dividends and related cost		1,250		1,250		1,250			2,500		2,482
Net income (loss) available to common shareholders	$	1,561	$	1,946	$	(151,400	)	$	3,507	$	(147,852	)
Comprehensive income (loss)	$	3,705	$	4,166	$	(150,557	)	$	7,871	$	(144,889	)
Earnings (loss) per common share:
Basic	$	0.12	$	0.15	$	(11.58	)	$	0.27	$	(11.32	)
Diluted 1	$	0.12	$	0.15	$	(11.58	)	$	0.27	$	(11.32	)
Weighted average common  shares:
Basic		13,098		13,082		13,070			13,090		13,067
Diluted		13,158		13,173		13,070			13,148		13,067
Dividends declared per common share	$	0.00	$	0.00	$	0.00		$	0.00	$	0.13

	June 30, 2010			March 31, 2010			June 30, 2009
Total assets	$	2,529,332		$	2,569,732		$	2,629,834
Cash and cash equivalents		208,155			177,541			107,573
Investment and other securities		190,471			198,066			181,234
Loans, net of unearned interest		1,928,174			1,994,039			2,183,754
Allowance for loan losses		(50,049	)		(50,167	)		(50,157	)
Deposits		1,991,839			2,037,865			2,026,722
Shareholders' equity		233,150			230,189			233,192
Common shareholders' equity 2		165,722			163,108			167,151
Tangible common shareholders' equity 3		157,678			154,424			156,522
Common book value per share 2		12.56			12.36			12.69
Tangible common book value per share 3		11.95			11.71			11.88

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, 2010, December 31, 2009 and June 30, 2009

(Dollars in thousands)

	(Unaudited)						(Unaudited)
	June 30,			December 31,			June 30,
	2010			2009*			2009
ASSETS
Cash and due from banks	$	206,412		$	206,701		$	103,454
Federal funds sold		1,743			3,793			4,119
Cash and cash equivalents		208,155			210,494			107,573
Interest earning deposits in other banks		1,000			11,000			-
Securities available-for-sale ("AFS")		176,121			147,724			167,853
Securities held-to-maturity (with a market value of $625, $638 and $595
on June 30, 2010, December 31, 2009 and June 30, 2009)		616			626			647
FHLB and other stock, at cost		12,734			12,734			12,734
Loans held for sale		830			1,533			3,634
Loans, net of unearned income		1,928,174			2,043,807			2,183,754
Allowance for loan losses		(50,049	)		(50,161	)		(50,157	)
Other real estate owned and repossessed assets		76,932			57,168			34,468
Bank premises and equipment, net		80,437			81,818			83,448
Cash surrender value of life insurance		30,872			30,277			30,113
Goodwill		-			-			-
Core deposit and other intangibles		8,044			9,335			10,629
Other assets		55,466			62,784			45,138
Total assets	$	2,529,332		$	2,619,139		$	2,629,834
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest-bearing deposits	$	170,396		$	177,602		$	165,735
Interest-bearing deposits		1,820,044			1,899,910			1,746,895
Brokered deposits		1,399			6,584			114,092
Total deposits		1,991,839			2,084,096			2,026,722
Repurchase agreements		24,240			24,449			25,990
FHLB advances and notes payable		171,838			171,999			229,154
Subordinated debentures		88,662			88,662			88,662
Accrued interest payable and other liabilities		19,603			23,164			26,114
Total liabilities		2,296,182			2,392,370			2,396,642
SHAREHOLDERS' EQUITY
Preferred stock: no par value, 1,000,000 shares authorized;
72,278, 72,278 and 72,278 shares outstanding		67,428			66,735			66,041
Common stock: $2 par value, 20,000,000 shares authorized;
13,192,109, 13,171,474 and 13,175,817 shares outstanding		26,384			26,343			26,351
Common stock warrants		6,934			6,934			6,934
Additional paid in capital		188,585			188,310			187,966
Retained earnings (deficit)		(58,233	)		(61,742	)		(53,918	)
Accumulated other comprehensive income		2,052			189			(182	)
Total shareholders' equity		233,150			226,769			233,192
Total liabilities & shareholders' equity	$	2,529,332		$	2,619,139		$	2,629,834
* Derived from Audited Consolidated Financial Statements.

GREEN BANKSHARES, INC.

Consolidated Statements of Income and Comprehensive Income

Three Months Ended June 30, 2010, March 31, 2010 and June 30, 2009 and Six Months Ended June 30, 2010 and 2009

(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,
	2010			2010		2009			2010			2009
Interest income:
Interest and fees on loans	$	29,374		$	30,060	$	32,528		$	59,434		$	65,173
Taxable securities		1,391			1,288		1,843			2,679			4,063
Nontaxable securities		306			312		314			618			634
FHLB and other stock		134			138		135			272			285
Federal funds sold and other		99			94		36			193			81
Total interest income		31,304			31,892		34,856			63,196			70,236
Interest expense:
Deposits		7,626			8,061		11,511			15,687			24,164
Federal funds purchased and repurchase agreements		5			6		7			11			16
FHLB advances and notes payable		1,712			1,694		2,469			3,406			4,912
Subordinated debentures		488			472		689			960			1,535
Total interest expense		9,831			10,233		14,676			20,064			30,627
Net interest income		21,473			21,659		20,180			43,132			39,609
Provision for loan losses		4,749			3,889		24,384			8,638			25,369
Net interest income (loss) after provision for loan losses		16,724			17,770		(4,204	)		34,494			14,240
Non-interest income:
Service charges on deposit accounts		6,692			5,940		5,795			12,632			11,151
Other charges and fees		383			356		505			739			954
Trust and investment services income		757			582		489			1,339			877
Mortgage banking income		123			118		110			241			165
Other income		909			690		642			1,599			1,337
Securities gains (losses), net
Other-than-temporary impairment		(553	)		-		(960	)		(553	)		(960	)
Less non-credit portion recognized in other comprehensive income		460			-		227			460			227
Total securities gains (losses), net		(93	)		-		(733	)		(93	)		(733	)
Total non-interest income		8,771			7,686		6,808			16,457			13,751
Non-interest expense:
Employee compensation		7,972			7,665		8,064			15,637			15,756
Employee benefits		816			977		1,229			1,793			2,524
Occupancy expense		1,684			1,699		1,712			3,383			3,499
Equipment expense		668			708		895			1,376			1,637
Computer hardware/software expense		886			824		651			1,710			1,288
Professional services		576			607		446			1,183			975
Advertising		806			598		679			1,404			743
OREO maintenance expense		554			445		137			999			280
Collection and repossession expense		534			1,287		711			1,821			1,009
Loss on OREO and repossessed assets		926			509		3,346			1,435			3,427
FDIC insurance		1,209			851		2,550			2,060			3,250
Core deposit and other intangible amortization		640			651		652			1,291			1,456
Goodwill impairment		-			-		143,389			-			143,389
Other expenses		4,003			3,725		3,949			7,728			7,008
Total non-interest expense		21,274			20,546		168,410			41,820			186,241
Income (loss) before income taxes		4,221			4,910		(165,806	)		9,131			(158,250	)
Income taxes provision (benefit)		1,410			1,714		(15,656	)		3,124			(12,880	)
Net income (loss)		2,811			3,196		(150,150	)		6,007			(145,370	)
Preferred stock dividends and accretion of discount on warrants		1,250			1,250		1,250			2,500			2,482
Net income (loss) available to common shareholders	$	1,561		$	1,946	$	(151,400	)	$	3,507		$	(147,852	)
Comprehensive income (loss)	$	3,705		$	4,166	$	(150,557	)	$	7,871		$	(144,889	)
Per share of common stock:
Basic earnings (loss)	$	0.12		$	0.15	$	(11.58	)	$	0.27		$	(11.32	)
Diluted earnings (loss)	$	0.12		$	0.15	$	(11.58	)	$	0.27		$	(11.32	)
Dividends	$	0.00		$	0.00	$	0.00		$	0.00		$	0.13
Weighted average shares outstanding:
Basic		13,097,611			13,082,347		13,070,216			13,090,021			13,066,569
Diluted(1)		13,158,131			13,172,727		13,070,216			13,148,226			13,066,569
(1) Diluted weighted average shares outstanding exclude 105,734 and 92,420 restricted average shares for the three and six month periods ended June 30, 2009 because their impact would be anti-dilutive.

GREEN BANKSHARES, INC.

Consolidated Financial Highlights

(UNAUDITED)

(Dollars in thousands except share and per share data)

	June 30,			December 31,			%
	2010			2009			Change
Financial Condition Data:
Assets	$	2,529,332		$	2,619,139			-3.43	%
Loans, net of unearned interest		1,928,174			2,043,807			-5.66	%
Cash and investments		398,626			382,578			4.19	%
Federal funds sold		1,743			3,793			-54.05	%
Deposits		1,991,839			2,084,096			-4.43	%
FHLB advances and notes payable		171,838			171,999			-0.09	%
Subordinated debentures		88,662			88,662			0.00	%
Repurchase agreements		24,240			24,449			-0.85	%
Shareholders' equity		233,150			226,769			2.81	%
Common shareholders' equity (1)		165,722			160,034			3.55	%
Tangible common shareholders' equity (2)		157,678			150,699			4.63	%
Tangible shareholders' equity (3)		225,106			217,434			3.53	%
Ratios:
Common book value per share (1)	$	12.56		$	12.15			3.37	%
Tangible common book value per share (2)	$	11.95		$	11.44			4.46	%
Total tangible equity to tangible assets (3)(4)		8.93	%		8.33	%		7.16	%
Tangible common equity to tangible assets (2)(4)		6.25	%		5.77	%		8.30	%
Average equity to average assets		9.05	%		11.09	%		-18.39	%
(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								Six Months Ended
	June 30,								June 30,
	2010		2009			% Change			2010		2009			% Change
Operating Data:
Total interest income	$	31,304	$	34,856			-10.19	%	$	63,196	$	70,236			-10.02	%
Total interest expense		9,831		14,676			-33.01	%		20,064		30,627			-34.49	%
Net interest income		21,473		20,180			6.41	%		43,132		39,609			8.89	%
Provision for loan losses		4,749		24,384			-80.52	%		8,638		25,369			-65.95	%
Net interest income (loss) after provision for loan losses		16,724		(4,204	)		497.81	%		34,494		14,240			142.23	%
Non-interest income		8,771		6,808			28.83	%		16,457		13,751			19.68	%
Non-interest expense		21,274		168,410			-87.37	%		41,820		186,241			-77.55	%
Income (loss) before income taxes		4,221		(165,806	)		102.55	%		9,131		(158,250	)		105.77	%
Income tax expense (benefit)		1,410		(15,656	)		109.01	%		3,124		(12,880	)		124.25	%
Net income (loss)		2,811		(150,150	)		101.87	%		6,007		(145,370	)		104.13	%
Preferred stock dividend and accretion of discount on warrants		1,250		1,250			0.00	%		2,500		2,482			0.73	%
Net income (loss) available to common shareholders	$	1,561	$	(151,400	)		101.03	%	$	3,507	$	(147,852	)		102.37	%
Comprehensive income (loss)	$	3,705	$	(150,557	)		102.46	%	$	7,871	$	(144,889	)		105.43	%
Per Share of Common Stock:
Basic earnings (loss)	$	0.12	$	(11.58	)		101.04	%	$	0.27	$	(11.32	)		102.39	%
Diluted earnings (loss)	$	0.12	$	(11.58	)		101.04	%	$	0.27	$	(11.32	)		102.39	%
Dividends	$	0.00	$	0.00			0.00	%	$	0.00	$	0.13			-100.00	%
Weighted Average Shares Outstanding:
Basic		13,097,611		13,070,216						13,090,021		13,066,569
Diluted		13,158,131		13,070,216						13,148,226		13,066,569

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2010			2010			2009			2010			2009
Key Financial Ratios:
Return on average assets		0.25	%		0.31	%		-21.67	%		0.28	%		-10.56	%
Return on average shareholders' equity		2.68	%		3.43	%		-157.41	%		3.05	%		-77.37	%
Return on average common shareholders' equity (1)		3.76	%		4.83	%		-189.79	%		4.28	%		-93.47	%
Return on average common tangible shareholders'  equity (2)		3.96	%		5.11	%		-363.33	%		4.52	%		-180.70	%
Interest rate spread		3.77	%		3.81	%		3.26	%		3.79	%		3.13	%
Net interest margin		3.86	%		3.90	%		3.43	%		3.88	%		3.33	%
Efficiency Ratio		70.34	%		70.01	%		610.16	%		70.18	%		345.65	%
(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,
	2010			2009			2009
Asset Quality Ratios:
Nonperforming loans as a percentage of total
loans, net of unearned income		3.37	%		3.70	%		4.34	%
Nonperforming assets as a percentage of total assets		5.61	%		5.07	%		4.91	%
Allowance for loan losses as a percentage of total loans, net of unearned income		2.60	%		2.45	%		2.30	%
Allowance for loan losses as a percentage of
nonperforming loans		77.02	%		66.39	%		52.96	%
Net charge-offs to average total loans, net of
unearned income		0.44	%		2.25	%		1.08	%

GREEN BANKSHARES, INC.

Consolidated Financial Highlights

June 30, 2010

(UNAUDITED)

Nonperforming Assets and Net Charge-offs							Asset Quality Ratios
As of and for the three months ended June 30, 2010	Bank		Other		Total		As of and for the three months ended June 30, 2010	Bank			Other			Consolidated
Loans past due 90 days and still accruing	$	641	$	-	$	641	Nonperforming loans as a percentage of total loans, net of unearned income		3.37	%		1.28	%		3.37	%
Nonaccrual loans		63,784		558		64,342	Nonperforming assets as a percentage of total assets		5.59	%		1.38	%		5.61	%
Other real estate owned and repossessed assets		76,746		186		76,932	Allowance for loan losses as a percentage of total loans, net of unearned income		2.44	%		7.89	%		2.60	%
Total nonperforming assets	$	141,171	$	744	$	141,915	Allowance for loan losses as a percentage of nonperforming loans		72.35	%		616.49	%		77.02	%
							YTD net charge-offs to average total loans, net of unearned income		0.40	%		2.09	%		0.44	%
YTD net charge-offs	$	7,847	$	903	$	8,750
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 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
June 30, 2010
	Three Months Ended														Six Months Ended
	June 30,														June 30,
	2010							2009							2010							2009
	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)		1,896,071		29,390		6.22	%		2,127,104		32,538		6.14	%		1,924,943		59,470		6.23	%		2,151,190		65,193		6.11	%
Investment securities (2)		193,961		1,996		4.13	%		195,390		2,461		5.05	%		181,559		3,902		4.33	%		206,015		5,323		5.21	%
Other short-term investments		158,208		99		0.25	%		59,883		36		0.24	%		153,328		193		0.25	%		65,141		81		0.25	%
Total interest-earning assets		2,248,240		31,485		5.62	%		2,382,377		35,035		5.90	%		2,259,830		63,565		5.67	%		2,422,346		70,597		5.88	%
Non-interest earning assets		305,374							420,404							305,977							402,244
Total assets		2,553,614							2,802,781							2,565,807							2,824,590
Interest-bearing liabilities:
Deposits:
Interest checking, money market and savings		970,304		2,487		1.03	%		731,422		2,542		1.39	%		956,174		4,885		1.03	%		677,863		4,394		1.31	%
Time deposits		884,038		5,138		2.33	%		1,155,533		8,969		3.11	%		912,057		10,801		2.39	%		1,225,516		19,770		3.25	%
Total interest bearing-deposits		1,854,342		7,625		1.65	%		1,886,955		11,511		2.45	%		1,868,231		15,686		1.69	%		1,903,379		24,164		2.56	%
Securities sold under repurchase and short-term borrowings		21,943		5		0.09	%		28,171		7		0.10	%		22,774		11		0.10	%		30,609		16		0.11	%
Notes payable		171,847		1,712		4.00	%		229,165		2,469		4.32	%		171,897		3,406		4.00	%		229,223		4,912		4.32	%
Subordinated debentures		88,662		489		2.21	%		88,662		689		3.12	%		88,662		961		2.19	%		88,662		1,535		3.49	%
Total interest-bearing liabilities		2,136,794		9,831		1.85	%		2,232,953		14,676		2.64	%		2,151,564		20,064		1.88	%		2,251,873		30,627		2.74	%
Non-interest bearing liabilities:
Demand Deposits		165,554							162,458							164,370							165,268
Other Liabilities		17,477							21,597							17,786							22,098
Total non-interest bearing liabilities		183,031							184,055							182,156							187,366
Total liabilities		2,319,825							2,417,008							2,333,720							2,439,239
Shareholders' equity		233,789							385,773							232,087							385,351
Total liabilities & shareholders' equity		2,553,614							2,802,781							2,565,807							2,824,590
Net interest income				21,654							20,359							43,501							39,970
Interest rate spread						3.77	%						3.26	%						3.79	%						3.13	%
Net yield on interest-earning assets (net interest margin)						3.86	%						3.43	%						3.88	%						3.33	%
(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, 2010

(UNAUDITED)

	June 30, 2010						March 31, 2010
Loans	Balance			%			Balance			%			% Change
Commercial	$	255,223			13.14	%	$	268,834			13.38	%		-5.06	%
Commercial real estate		1,222,460			62.92	%		1,271,094			63.28	%		-3.83	%
Residential real estate		384,227			19.78	%		386,664			19.25	%		-0.63	%
Consumer		78,421			4.04	%		79,476			3.96	%		-1.33	%
Other		2,581			0.13	%		2,709			0.13	%		-4.72	%
Total loans		1,942,912			100.00	%		2,008,777			100.00	%		-3.28	%
Less: Unearned income		(14,738	)					(14,738	)
Loans, net of unearned income	$	1,928,174					$	1,994,039
Loan Balances by Geographical Region and Operating Subsidiaries
	June 30, 2010						March 31, 2010
	Loan			% to			Loan			% to
	Balance			Total Loans			Balance			Total Loans			% Change
Northeastern Tennessee Region(1)	$	557,874			28.93	%	$	517,105			25.93	%		7.88	%
East Tennessee Region		597,263			30.98	%		685,808			34.39	%		-12.91	%
Middle Tennessee Region		729,438			37.83	%		748,126			37.52	%		-2.50	%
GCB Acceptance Corporation		19,184			1.00	%		19,099			0.96	%		0.45	%
Superior Financial Services, Inc.		24,415			1.27	%		23,901			1.20	%		2.15	%
Loans, net of unearned income	$	1,928,174			100.00	%	$	1,994,039			100.00	%		-3.30	%
(1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina

	June 30, 2010					March 31, 2010
Deposits	Balance		%			Balance		%			% Change
Non-interest bearing demand	$	170,396		8.56	%	$	166,369		8.16	%		2.42	%
Interest bearing demand		667,108		33.49	%		669,243		32.84	%		-0.32	%
Money market and savings		306,600		15.39	%		290,313		14.25	%		5.61	%
Retail time		516,918		25.95	%		552,366		27.11	%		-6.42	%
Jumbo time		330,818		16.61	%		359,574		17.64	%		-8.00	%
Total	$	1,991,840		100.00	%	$	2,037,865		100.00	%		-2.26	%
Deposit Balances by Geographical Region
	June 30, 2010					March 31, 2010
	Balance		%			Balance		%			% Change
Northeastern Tennessee Region(1)	$	724,809		36.39	%	$	747,586		36.68	%		-3.05	%
East Tennessee Region		320,418		16.09	%		322,361		15.82	%		-0.60	%
Middle Tennessee Region		946,613		47.52	%		967,918		47.50	%		-2.20	%
Total	$	1,991,840		100.00	%	$	2,037,865		100.00	%		-2.26	%
(1) Includes one branch located in Southwestern Virginia and one branch located in Northwestern North Carolina