UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 12b-25


                           NOTIFICATION OF LATE FILING


                                               COMMISSION FILE NUMBER: 0-23551


(Check One):   |_| Form 10-KSB  |_| Form 20-F  |_| Form 11-K   |X| Form 10-QSB

               |_| Form N-SAR

               For Period Ended:  September 30, 2005

               |_| Transition Report on Form 10-K
               |_| Transition Report on Form 20-F
               |_| Transition Report on Form 11-K
               |_| Transition Report on Form 10-Q
               |_| Transition Report on Form N-SAR

               For the Transition Period Ended: _________________

If the notification  relates to a portion of the filing checked above,  identify
the Item(s) to which the notification relates:

                                     PART I

                             REGISTRANT INFORMATION

Full Name of registrant:                   UNITED TENNESSEE BANKSHARES, INC.

Former Name if applicable:

Address of principal executive office:     170 W. Broadway

City, state and zip code:                  Newport, Tennessee 37821




                                     PART II

                             RULES 12b-25(b) AND (c)

If the subject report could not be filed without  unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following should
be completed. (Check box if appropriate)

   |X|     (a)  The reasons described in reasonable detail in Part III of this
                form could not be eliminated without unreasonable effort or
                expense;
   |X|     (b)  The subject annual report, semi-annual report, transition report
                on Form 10-KSB, Form 20-F, Form 11-K, Form N-SAR, or Form N-CSR,
                or portion thereof, will be filed on or before the fifteenth
                calendar day following the prescribed due date; or the subject
                quarterly report on Form 10-Q, or portion thereof, will be filed
                on or before the fifth calendar day following the prescribed due
                date; and
   |_|     (c)  The accountant's statement or other exhibit required by
                Rule 12b-25(c) has been attached if applicable.


                                    PART III

                                    NARRATIVE

     The  Registrant's  Quarterly  Report on Form 10-QSB for the  quarter  ended
September 30, 2005 could not be filed because the Registrant, in anticipation of
the  de-registration  of its securities before the required filing date pursuant
to a going private  transaction,  had not prepared the report.  Registrant is in
the  process of a going  private  transaction  which was to be voted upon at its
annual  shareholders  meeting on November 10, 2005.  Just prior to that meeting,
management  and  the  audit  committee  of  Registrant,   in  consultation  with
Registrant's  independent  registered  public  accounting  firm, Pugh & Company,
P.C., determined that Registrant did not correctly record the expense associated
with the  repurchase  of its common stock from  employees  and directors for the
years ended  December  31, 2003 and 2004 and the interim  period  ended June 30,
2005,  and such expense will be restated by  Registrant.  The annual meeting was
adjourned until corrected  information could be provided to the shareholders and
amended periodic reports could be filed with the SEC.

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                                     PART IV

                                OTHER INFORMATION

(1)  Name and telephone number of person to contact in regard to this
     notification:

     Linda M. Crouch-McCreadie      (423) 928-0181

(2)  Have all other periodic  reports  required under Section 13 or 15(d) of the
     Securities Exchange Act of 1934 or Section 30 of the Investment Company Act
     of 1940 during the preceding 12 months or for such shorter  period that the
     registrant was required to file such report(s) been filed? If answer is no,
     identify report(s). |X| Yes |_| No

(3)  Is it anticipated that any significant change in results of operations from
     the corresponding  period for the last fiscal year will be reflected by the
     earnings  statements  to be  included  in the  subject  report  or  portion
     thereof? |_| Yes |X| No

     If so: attach an explanation of the anticipated  change,  both  narratively
     and quantitatively, and, if appropriate, state the reasons why a reasonable
     estimate of the results cannot be made.



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                                    SIGNATURE


     United Tennessee Bankshares, Inc. has caused this notification to be signed
on its behalf by the undersigned hereunto duly authorized.

     Date: November 15, 2005



                                  By:  /s/ Richard G. Harwood
                                     ------------------------------------------
                                           Richard G. Harwood
                                           President and Chief Executive Officer


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