UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2008

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

GREEN BANKSHARES, INC.

(Exact name of registrant as specified in its charter)

Tennessee		62-1222567
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
100 North Main Street, Greeneville, Tennessee		37743-4992
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (423) 639-5111

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES þ NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o		Accelerated filer þ		Non-accelerated filer o		Smaller reporting company o
				(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) YES o NO þ

As of August 8, 2008, the number of shares outstanding of the issuer’s common stock was: 12,999,161.

 

 

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The unaudited condensed consolidated financial statements of Green Bankshares, Inc. and its wholly owned subsidiaries are as follows:

Condensed Consolidated Balance Sheets — June 30, 2008 and December 31, 2007.			2
Condensed Consolidated Statements of Income and Comprehensive Income — For the three and six months ended June 30, 2008 and 2007.			3
Condensed Consolidated Statement of Changes in Shareholders’ Equity — For the six months ended June 30, 2008.			4
Condensed Consolidated Statements of Cash Flows — For the six months ended June 30, 2008 and 2007.			5
Notes to Condensed Consolidated Financial Statements.			6
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2

GREEN BANKSHARES, INC.

		(Unaudited)
		June 30,				December 31,
		2008				2007*
ASSETS
Cash and due from banks		$	59,823			$	65,717
Federal funds sold			34,335				—
Securities available for sale			276,378				235,273
Securities held to maturity (with a market value of $942 and $1,280)			968				1,303
FHLB and other stock, at cost			13,042				12,322
Loans held for sale			2,540				2,331
Loans, net of unearned income			2,347,241				2,356,376
Allowance for loan losses			(35,351	)			(34,111	)
Other real estate owned and repossessed assets			20,632				4,859
Premises and equipment, net			83,010				82,697
Goodwill and other intangible assets			156,518				157,827
Other assets			59,400				63,147
Total assets		$	3,018,536			$	2,947,741
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits		$	2,260,950			$	1,986,793
Federal funds purchased			—				87,787
Repurchase agreements			91,641				106,738
FHLB advances and notes payable			230,010				318,690
Subordinated debentures			88,662				88,662
Accrued interest payable and other liabilities			20,846				36,594
Total liabilities			2,692,109				2,625,264
Shareholders’ equity
Common stock: $2 par, 20,000,000 shares authorized, 13,001,226 and 12,931,015 shares outstanding			26,003				25,862
Additional paid-in capital			185,428				185,170
Retained earnings			115,198				109,938
Accumulated other comprehensive income (loss)			(202	)			1,507
Total shareholders’ equity			326,427				322,477
Total liabilities and shareholders’ equity		$	3,018,536			$	2,947,741

See notes to condensed consolidated financial statements.

GREEN BANKSHARES, INC.

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
		(Unaudited)								(Unaudited)
Interest income
Interest and fees on loans		$	39,407			$	39,681			$	82,156			$	71,596
Investment securities			3,265				2,090				6,622				2,798
Federal funds sold and other			22				12				25				27
			42,694				41,783				88,803				74,421
Interest expense
Deposits			13,377				15,012				29,312				26,165
Borrowings			4,273				3,838				9,975				6,502
			17,650				18,850				39,287				32,667
Net interest income			25,044				22,933				49,516				41,754
Provision for loan losses			11,019				1,259				11,907				2,233
Net interest income after provision for loan losses			14,025				21,674				37,609				39,521
Noninterest income
Service charges and fees			6,787				5,395				13,014				9,684
Other			1,325				1,088				2,404				2,198
			8,112				6,483				15,418				11,882
Noninterest expense
Salaries and employee benefits			9,256				8,472				19,104				15,930
Occupancy and furniture and equipment expense			3,114				2,626				6,563				4,722
Other			7,770				5,611				14,034				10,099
			20,140				16,709				39,701				30,751
Income before income taxes			1,997				11,448				13,326				20,652
Provision for income taxes			535				4,362				4,686				7,950
Net income		$	1,462			$	7,086			$	8,640			$	12,702
Comprehensive income (loss)		$	(2,255	)		$	4,357			$	6,931			$	10,014
Per share of common stock:
Basic earnings		$	0.11			$	0.63			$	0.67			$	1.20
Diluted earnings			0.11				0.62				0.67				1.19
Dividends			0.13				0.13				0.26				0.26
Weighted average shares outstanding:
Basic			12,931,669				11,321,822				12,931,419				10,572,798
Diluted			12,958,439				11,395,518				12,939,638				10,647,638

See notes to condensed consolidated financial statements.

GREEN BANKSHARES, INC.

																		Accumulated
										Additional								Other				Total
		Common Stock								Paid-in				Retained				Comprehensive				Shareholders’
		Shares				Amount				Capital				Earnings				Income (loss)				Equity
		(Unaudited)
Balance, December 31, 2007			12,931,015			$	25,862			$	185,170			$	109,938			$	1,507			$	322,477
Common stock transactions:
Exercise of shares under stock option plan			759				2				12				—				—				14
Issuance of restricted common shares			69,452				139				(139	)			—				—				—
Compensation expense:
Stock options			—				—				228				—				—				228
Restricted stock			—				—				157				—				—				157
Dividends paid ($.26 per share)			—				—				—				(3,380	)			—				(3,380	)
Comprehensive income:
Net income			—				—				—				8,640				—				8,640
Change in unrealized gains (losses) , net of reclassification and taxes			—				—				—				—				(1,709	)			(1,709	)
Total comprehensive income																							6,931
Balance, June 30, 2008			13,001,226			$	26,003			$	185,428			$	115,198			$	(202	)		$	326,427

See notes to condensed consolidated financial statements.

GREEN BANKSHARES, INC.

		June 30,				June 30,
		2008				2007
		(Unaudited)
Cash flows from operating activities
Net income		$	8,640			$	12,702
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses			11,907				2,233
Depreciation and amortization			3,509				2,416
Security amortization and accretion, net			(548	)			(77	)
Loss on sale of securities			—				23
FHLB stock dividends			(303	)			—
Net gain on sale of mortgage loans			(388	)			(535	)
Originations of mortgage loans held for sale			(33,715	)			(33,779	)
Proceeds from sales of mortgage loans			33,894				34,022
Increase in cash surrender value of life insurance			(536	)			(413	)
Net losses from sales of fixed assets			386				78
Stock-based compensation expense			385				235
Net gain on other real estate and repossessed assets			(105	)			(178	)
Deferred tax expense			(1,095	)			(2,996	)
Net changes:
Other assets			6,482				(642	)
Accrued interest payable and other liabilities			(15,748	)			18,083
Net cash provided by operating activities			12,765				31,172
Cash flows from investing activities
Purchase of securities available for sale			(80,644	)			(23,682	)
Proceeds from sale of securities available for sale			—				1,262
Proceeds from maturities of securities available for sale			37,276				13,106
Proceeds from sale of securities held to maturity			—				496
Proceeds from maturities of securities held to maturity			335				690
Purchase of FHLB stock			(417	)			(819	)
Net change in loans			(28,255	)			(152,845	)
Acquisition, net of cash received			—				(24,548	)
Proceeds from sale of other real estate			11,498				2,622
Improvements to other real estate			(443	)			—
Proceeds from sale of fixed assets			50				13
Premises and equipment expenditures			(2,949	)			(6,008	)
Net cash used by investing activities			(63,549	)			(189,713	)
Cash flows from financing activities
Net change in deposits			274,157				38,157
Net change in federal funds purchased and repurchase agreements			(102,884	)			(11,994	)
Tax benefit resulting from stock options			—				43
Proceeds from FHLB advances and notes payable			20,916				114,200
Proceeds from subordinated debentures			—				57,732
Repayments of FHLB advances and notes payable			(109,597	)			(35,790	)
Dividends paid			(3,380	)			(2,957	)
Proceeds from issuance of common stock			14				324
Net cash provided by financing activities			79,226				159,715
Net change in cash and cash equivalents			28,442				1,174
Cash and cash equivalents, beginning of year			65,717				70,640
Cash and cash equivalents, end of period		$	94,159			$	71,814
Supplemental disclosures — cash and noncash
Interest paid		$	42,901			$	28,866
Income taxes paid			5,250				9,499
Loans converted to other real estate			26,901				1,785
Unrealized gain (loss) on available for sale securities, net of tax			(1,709	)			2,688

See notes to condensed consolidated financial statements.

GREEN BANKSHARES, INC.

NOTE 1 — PRINCIPLES OF CONSOLIDATION

The accompanying unaudited condensed consolidated financial statements of Green Bankshares, Inc. (the “Company”) and its wholly owned subsidiary, GreenBank (the “Bank”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2008 are not necessarily indicative of the results that may be expected for the year ending December 31, 2008. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. Certain amounts from prior period financial statements have been reclassified to conform to the current year’s presentation.

NOTE 2 — LOANS

Loans at June 30, 2008 and December 31, 2007 were as follows:

		June 30,				December 31,
		2008				2007
Commercial real estate		$	1,546,314			$	1,549,457
Residential real estate			393,196				398,779
Commercial			324,779				320,264
Consumer			93,910				97,635
Other			3,825				3,871
Unearned income			(14,783	)			(13,630	)
Loans, net of unearned income		$	2,347,241			$	2,356,376
Allowance for loan losses		$	(35,351	)		$	(34,111	)

(Continued)

GREEN BANKSHARES, INC.

NOTE 2 — LOANS (Continued)

Transactions in the allowance for loan losses and certain information about nonaccrual loans and loans 90 days past due but still accruing interest for the six months ended June 30, 2008 and twelve months ended December 31, 2007 were as follows:

		June 30,				December 31,
		2008				2007
Balance at beginning of year		$	34,111			$	22,302
Add (deduct):
Reserve of acquired bank			—				9,022
Provision for loan losses			11,907				14,483
Loans charged off			(12,006	)			(13,471	)
Recoveries of loans charged off			1,339				1,775
Ending balance		$	35,351			$	34,111

		June 30,				December 31,
		2008				2007
Impaired loans were as follows:
Loans with allowance allocated		$	47,201			$	36,267
Amount of allowance allocated			7,080				5,440
Nonperforming loans were as follows:
Loans past due 90 days still on accrual		$	161			$	18
Nonaccrual loans			40,419				32,060
Total		$	40,580			$	32,078

(Continued)

GREEN BANKSHARES, INC.

NOTE 3 — EARNINGS PER SHARE OF COMMON STOCK

Basic earnings per share (EPS) of common stock is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the weighted average number of common shares and potential common shares outstanding during the period. Stock options and restricted common shares are regarded as potential common shares. Potential common shares are computed using the treasury stock method. For the three and six months ended June 30, 2008, 408,127 options are excluded from the effect of dilutive securities because they are anti-dilutive; 73,626 options are similarly excluded from the effect of dilutive securities for the three and six months ended June 30, 2007.

The following is a reconciliation of the numerators and denominators used in the basic and diluted earnings per share computations for the three and six months ended June 30, 2008 and 2007:

		Three Months Ended June 30,
		2008								2007
		Income				Shares				Income				Shares
		(Numerator)				(Denominator)				(Numerator)				(Denominator)
Basic EPS
Income available to common shareholders		$	1,462				12,931,669			$	7,086				11,321,822
Effect of dilutive shares			—				26,770				—				73,696
Diluted EPS
Income available to common shareholders plus assumed conversions		$	1,462				12,958,439			$	7,086				11,395,518

		Six Months Ended June 30,
		2008								2007
		Income				Shares				Income				Shares
		(Numerator)				(Denominator)				(Numerator)				(Denominator)
Basic EPS
Income available to common shareholders		$	8,640				12,931,419			$	12,702				10,572,798
Effect of dilutive shares			—				8,219				—				74,840
Diluted EPS
Income available to common shareholders plus assumed conversions		$	8,640				12,939,638			$	12,702				10,647,638

(Continued)

GREEN BANKSHARES, INC.

NOTE 4 — SEGMENT INFORMATION

The Company’s operating segments include banking, mortgage banking, consumer finance, automobile lending and title insurance. The reportable segments are determined by the products and services offered, and internal reporting. Loans, investments and deposits provide the revenues in the banking operation; loans and fees provide the revenues in consumer finance and mortgage banking and insurance commissions provide revenues for the title insurance company. Consumer finance, automobile lending and title insurance do not meet the quantitative threshold on an individual basis, and are therefore shown below in “Other Segments”. Mortgage banking operations are included in “Bank”. All operations are domestic.

Segment performance is evaluated using net interest income and noninterest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on time spent for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows.

						Other				Holding
Three months ended June 30, 2008		Bank				Segments				Company				Eliminations				Totals
Net interest income (expense)		$	24,078			$	1,974			$	(1,008	)		$	—			$	25,044
Provision for loan losses			10,502				517				—				—				11,019
Noninterest income			7,730				566				30				(214	)			8,112
Noninterest expense			18,553				1,256				545				(214	)			20,140
Income tax expense (benefit)			815				301				(581	)			—				535
Segment profit (loss)		$	1,938			$	466			$	(942	)		$	—			$	1,462
Segment assets at June 30, 2008		$	2,969,897			$	39,778			$	8,861			$	—			$	3,018,536

						Other				Holding
Three months ended June 30, 2007		Bank				Segments				Company				Eliminations				Totals
Net interest income (expense)		$	22,002			$	1,649			$	(718	)		$	—			$	22,933
Provision for loan losses			905				354				—				—				1,259
Noninterest income			6,075				674				27				(293	)			6,483
Noninterest expense			15,496				1,282				224				(293	)			16,709
Income tax expense (benefit)			4,442				270				(350	)			—				4,362
Segment profit (loss)		$	7,234			$	417			$	(565	)		$	—			$	7,086
Segment assets at June 30, 2007		$	2,871,987			$	39,998			$	15,313			$	—			$	2,927,298

Six months ended June 30, 2008		Bank				Other Segments				Holding Company				Eliminations				Totals
Net interest income (expense)		$	48,148			$	3,808			$	(2,440	)		$	—			$	49,516
Provision for loan losses			10,916				991				—				—				11,907
Noninterest income			14,604				1,064				177				(427	)			15,418
Noninterest expense			36,559				2,549				1,020				(427	)			39,701
Income tax expense (benefit)			5,446				522				(1,282	)			—				4,686
Segment profit (loss)		$	9,831			$	810			$	(2,001	)		$	—			$	8,640

						Other				Holding
Six months ended June 30, 2007		Bank				Segments				Company				Eliminations				Totals
Net interest income (expense)		$	39,534			$	3,206			$	(986	)		$	—			$	41,754
Provision for loan losses			1,519				714				—				—				2,233
Noninterest income			11,174				1,262				38				(592	)			11,882
Noninterest expense			28,362				2,512				469				(592	)			30,751
Income tax expense (benefit)			8,005				487				(542	)			—				7,950
Segment profit (loss)		$	12,822			$	755			$	(875	)		$	—			$	12,702

(Continued)

GREEN BANKSHARES, INC.

NOTE 4 — SEGMENT INFORMATION (Continued)

Asset Quality Ratios

As of and for the period ended June 30, 2008		Bank				Other			Total
Nonperforming loans as percentage of total loans, net of unearned income			1.71	%			1.51	%			1.73	%
Nonperforming assets as a percentage of total assets			2.00	%			2.13	%			2.03	%
Allowance for loan losses as a percentage of total loans, net of unearned income			1.37	%			8.02	%			1.51	%
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	%

As of and for the period ended June 30, 2007		Bank				Other				Total
Nonperforming loans as percentage of total loans, net of unearned income			0.19	%			1.47	%			0.21	%
Nonperforming assets as a percentage of total assets			0.17	%			1.62	%			0.20	%
Allowance for loan losses as a percentage of total loans, net of unearned income			1.30	%			8.02	%			1.42	%
Allowance for loan losses as a percentage of nonperforming loans			690.29	%			545.98	%			674.48	%
YTD net charge-offs to average total loans, net of unearned income			0.01	%			1.42	%			0.04	%

As of and for the year ended December 31, 2007		Bank				Other				Total
Nonperforming loans as percentage of total loans, net of unearned income			1.35	%			1.30	%			1.36	%
Nonperforming assets as a percentage of total assets			1.22	%			2.11	%			1.25	%
Allowance for loan losses as a percentage of total loans, net of unearned income			1.32	%			7.96	%			1.45	%
Allowance for loan losses as a percentage of nonperforming loans			98.37	%			609.80	%			106.34	%
Net charge-offs to average total loans, net of unearned income			0.50	%			4.14	%			0.57	%

Net charge-offs		Bank				Other				Total
Actual for the six month period ended June 30, 2008		$	9,865			$	802			$	10,667
Actual for the six month period ended June 30, 2007		$	124			$	498			$	622
Actual for the year ended December 31, 2007		$	10,193			$	1,503			$	11,696

NOTE 5 — REVOLVING CREDIT AGREEMENT

The Company is a party to a revolving credit agreement with SunTrust Bank pursuant to which SunTrust agreed to loan the Company up to $15,000. This agreement currently is scheduled to expire on August 27, 2008. The fee for maintaining this credit agreement is 0.15% per annum on the unused portion of the commitment.

(Continued)

GREEN BANKSHARES, INC.

NOTE 6 — BUSINESS COMBINATION

On May 18, 2007, the Company acquired Civitas BankGroup, Inc. (“CVBG”), parent of Cumberland Bank. CVBG, headquartered in Franklin, Tennessee, operated 12 full-service branches in the Middle Tennessee area. The primary reason for the acquisition of CVBG, and the premium paid, was to provide accelerated entry for the Company in the Middle Tennessee area in some of the fastest growing areas in the Nashville MSA. Operating results of CVBG are included in the consolidated financial statements since the date of the acquisition.

The acquisition was accounted for under the purchase method of accounting, and accordingly, the purchase price has been allocated to the tangible and identified intangible assets purchased and the liabilities assumed based upon preliminary estimated fair values at the date of acquisition. The aggregate purchase price was $164,268, including $45,793 paid in cash and 3,091,495 shares of the Company’s common stock. Identified intangible assets and purchase accounting fair value adjustments are being amortized under various methods over the expected lives of the corresponding assets and liabilities. Goodwill will not be amortized and is not deductible for tax purposes, but will be reviewed for impairment on an annual basis. Identified intangible assets from the acquisition subject to amortization were $9,485 and total goodwill from the acquisition was $111,813.

The following table summarizes the fair value of assets acquired and liabilities assumed at the date of acquisition:

Cash and due from banks		$	21,182
Securities			200,081
FHLB stock			2,863
Bankers Bank stock			100
Loans held for sale			8,642
Loans, net of unearned income			631,496
Allowance for loan losses			(9,022	)
Premises and equipment			18,332
Goodwill			111,813
Core deposit intangible			8,740
Mortgage servicing rights			745
Other assets			16,618
Total assets acquired			1,011,590
Deposits			(699,089	)
Federal funds purchased			(52,500	)
Repurchase agreements			(42,790	)
FHLB advances			(32,000	)
Subordinated debentures			(17,527	)
Other liabilities			(3,416	)
Total liabilities assumed			(847,322	)
Net assets acquired		$	164,268

The Company also incurred $761 in direct costs for legal, advisory and conversion cost that were capitalized into goodwill associated with the merger.

(Continued)

GREEN BANKSHARES, INC.

NOTE 6 — BUSINESS COMBINATION (Continued)

The following table presents pro forma information as if the acquisition had occurred at the beginning of 2007 for the six month period ending June 30, 2007. The pro forma information includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the acquisition, depreciation expense on property acquired, interest expense on deposits assumed, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the acquisition been effected on the assumed dates.

		Six Months
		Ended
		June 30,
		2007
Net interest income		$	54,348
Net income		$	16,694
Basic earnings per share		$	1.26
Diluted earnings per share		$	1.25

NOTE 7 — BORROWINGS

In May 2007, the Company formed GreenBank Capital Trust I (“GB Trust I”), and GB Trust I issued $56,000 of variable rate trust preferred securities. The Company issued $57,732 of subordinated debentures to the GB Trust I in exchange for the proceeds of the sale of trust preferred securities, which debentures represent the sole asset of GB Trust I. The debentures pay interest quarterly at the three-month LIBOR plus 1.65% adjusted quarterly (4.43% at June 30, 2008). The Company may redeem the subordinated debentures, in whole or in part, beginning June 2012 and in certain events prior to that date, at a premium. The subordinated debentures must be redeemed no later than 2037.

Also in May 2007 the Company acquired two Trusts in the CVBG acquisition, Civitas Statutory Trust I (“CS Trust I”) and Cumberland Capital Statutory Trust II (“CCS Trust II”).

In December 2005, CS Trust I issued $13,000 of variable rate trust preferred securities, and CVBG issued $13,403 of subordinated debentures to CS Trust I in exchange for the sale of trust preferred securities, which debentures represent the sole asset of CS Trust I. The debentures pay interest quarterly at the three-month LIBOR plus 1.54% adjusted quarterly (4.32% at June 30, 2008). The Company may redeem the subordinated debentures, in whole or in part, beginning March 2011 and in certain events prior to that date, at a premium. The subordinated debentures must be redeemed no later than March 2036.

In July 2001, CCS Trust II issued $4,000 of variable rate trust preferred securities, and CVBG issued $4,124 of subordinated debentures to CCS Trust II in exchange for the proceeds of the sale of trust preferred securities, which debentures represent the sole asset of CCS Trust II. The debentures pay interest quarterly at the three-month LIBOR plus 3.58% adjusted quarterly (6.48% at June 30, 2008). As of July 2007 the Company may redeem the subordinated debentures, in whole or in part at a price of 100% of face value. The subordinated debentures must be redeemed no later than July 2031.

(Continued)

GREEN BANKSHARES, INC.

NOTE 8 — FAIR VALUE DISCLOSURES

Effective January 1, 2008, the Company adopted Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” and SFAS No. 159 “The Fair Value Option for Financial Assets and Liabilities”. SFAS No. 157, which was issued in September 2006, establishes a framework for using fair value. It defines fair value rules as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. SFAS No. 159, which was issued in February 2007, generally permits the measurement of selected eligible financial instruments at fair value at specified election dates. Upon adoption of SFAS No. 159, the Company did not elect to adopt the fair value option for any financial instruments.

SFAS No. 157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. SFAS No. 157 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1

Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale.

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts.

Following is a description of valuation methodologies used for assets and liabilities recorded at fair value.

Investment Securities Available-for-Sale

Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices of like or similar securities, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions.

(Continued)

GREEN BANKSHARES, INC.

NOTE 8 — FAIR VALUE DISCLOSURES (Continued)

Loans Held for Sale

Loans held for sale are carried at the lower of cost or market value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2.

Loans

The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with SFAS No. 114, “Accounting by Creditors for Impairment of a Loan:” (SFAS 114). The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At June 30, 2008, substantially all of the total impaired loans were evaluated based on either the fair value of the collateral or its liquidation value. In accordance with SFAS No. 157, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3.

Loan Servicing Rights

Loan servicing rights are subject to impairment testing. A valuation model, which utilizes a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and a discount rate determined by management, is used in the completion of impairment testing. If the valuation model reflects a value less than the carrying value, loan servicing rights are adjusted to fair value through a valuation allowance as determined by the model. As such, the Company classifies loan servicing rights subjected to nonrecurring fair value adjustments as Level 3.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Below is a table that presents information about certain assets and liabilities measured at fair value:

		June 30, 2008
														Total Carrying
														Amount in
														Statement of				Assets/Liabilities
		Fair Value Measurement Using												Financial				Measured at Fair
Description		Level 1				Level 2				Level 3				Position				Value
Securities available for sale		$	—			$	276,378			$	—			$	276,378			$	276,378

(Continued)

GREEN BANKSHARES, INC.

NOTE 8 — FAIR VALUE DISCLOSURES (Continued)

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below.

		June 30, 2008
														Total Carrying
														Amount in
														Statement of				Assets/Liabilities
		Fair Value Measurement Using												Financial				Measured at Fair
Description		Level 1				Level 2				Level 3				Position				Value
Loans		$	—			$	—			$	29,011			$	29,011			$	29,011

(Continued)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Green Bankshares, Inc. (the “Company”) is the bank holding company for GreenBank (the “Bank”), a Tennessee-chartered commercial bank that conducts the principal business of the Company. The Company is the third largest bank holding company headquartered in Tennessee based on asset size at June 30, 2008 and at that date was also the second largest NASDAQ — listed bank holding company headquartered in Tennessee. The Bank currently maintains a main office in Greeneville, Tennessee and 65 full-service bank branches primarily in East and Middle Tennessee. In addition to its commercial banking operations, the Bank conducts separate businesses through its three wholly-owned subsidiaries: Superior Financial Services, Inc. (“Superior Financial”), a consumer finance company; GCB Acceptance Corporation (“GCB Acceptance”), an automobile lending company; and Fairway Title Co., a title company formed in 1998. The Bank also operates a wealth management office in Sumner County, Tennessee, and a mortgage banking operation in Knox County, Tennessee. All dollar amounts reported or discussed in Part I, Item 2 of this Quarterly Report on Form 10-Q are shown in thousands, except share and per share amounts.

The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of the Company’s consolidated results of operations and financial condition. This discussion should be read in conjunction with the (i) condensed consolidated financial statements and notes thereto in this Form 10-Q and (ii) the audited, consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 (the “2007 10-K”). Except for specific historical information, many of the matters discussed in this Form 10-Q may express or imply projections of revenues or expenditures, plans and objectives for future operations, growth or initiatives, expected future economic performance, or the expected outcome or impact of pending or threatened litigation. These and similar statements regarding events or results which the Company expects will or may occur in the future, are forward-looking statements that involve risks, uncertainties and other factors which may cause actual results and performance of the Company to differ materially from those expressed or implied by those statements. All forward-looking information is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these risks, uncertainties and other factors. Forward-looking statements, which are based on assumptions and estimates and describe our future plans, strategies and expectations, are generally identifiable by the use of forward-looking terminology and words such as “trends,” "assumptions,” “target,” “guidance,” “outlook,” “opportunity,” “future,” “plans,” “goals,” “objectives,” “expectations,” “near-term,” “long-term,” “projection,” “may,” “will,” “would,” “could,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential,” “regular,” or “continue” (or the negative or other derivatives of each of these terms) or similar terminology and expressions.

Although the Company believes that the assumptions underlying any forward-looking statements are reasonable, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in or implied by the forward-looking statements. Factors and risks that may result in actual results differing from this forward-looking information include, but are not limited to, those contained in the 2007 10-K in Part I, Item 1A thereof, which is incorporated herein by this reference, as well as other factors discussed throughout this document, including, without limitation the factors described under “Critical Accounting Policies and Estimates” on page 18 of this Quarterly Report on Form 10-Q, or from time to time, in the Company’s filings with the SEC, press releases and other communications.

Readers are cautioned not to place undue reliance on forward-looking statements made in this document, since the statements speak only as of the document’s date. All forward-looking statements included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by the cautionary statements in this section and to the more detailed risk factors included in the Company’s 2007 10-K. The Company has no obligation and does not intend to publicly update or revise any forward-looking statements contained in or incorporated by reference into this Quarterly Report on Form 10-Q, to reflect events or circumstances occurring after the date of this document or to reflect the occurrence of unanticipated events. Readers are advised, however, to consult any further disclosures the Company may make on related subjects in its documents filed with or furnished to the SEC or in its other public disclosures.

Growth and Business Strategy

The Company expects that, over the next five years, its growth from mergers and acquisitions, including acquisitions of both entire financial institutions and selected branches of financial institutions, will continue. De novo branching is also expected to be a method of growth, particularly in high-growth and other demographically-desirable markets.

The Company’s strategic plan projects geographic expansion within a 300-mile radius of its headquarters in Greene County, Tennessee. This could result in the Company expanding westward and eastward up to and including Nashville, Tennessee and Roanoke, Virginia, respectively, east/southeast up to and including the Piedmont area of North Carolina and western North Carolina, southward to northern Georgia and northward into eastern and central Kentucky. In particular, the Company believes the markets in and around Knoxville, Nashville and Chattanooga, Tennessee are highly desirable areas with respect to expansion and growth plans.

The Bank had historically operated under a single bank charter while conducting business under 18 bank brands. On January 23, 2007 the Bank announced that it was changing all brand names to GreenBank throughout all the communities it serves to better enhance recognition and customer convenience. The GreenBank name became effective on March 31, 2007. The Bank continues to offer local decision making through the presence of its regional executives in each of its markets, while maintaining a cost effective organizational structure in its back office and support areas.

The Bank focuses its lending efforts predominately on individuals and small to medium-sized businesses while it generates deposits primarily from individuals in its local communities. To aid in deposit generation efforts, the Bank offers its customers extended hours of operation during the week as well as on Saturday. During the first quarter of 2007, the Bank initiated Sunday banking hours from 1:00 pm to 4:00 pm at most branches. The Bank also offers free online banking and in early 2005 established its High Performance Checking Program which has generated a significant number of new core transaction accounts.

In addition to the Company’s business model, which is summarized in the paragraphs above, the Company is continuously investigating and analyzing other lines and areas of business. These include, but are not limited to, various types of insurance and real estate activities. Conversely, the Company frequently evaluates and analyzes the profitability, risk factors and viability of its various business lines and segments and, depending upon the results of these evaluations and analyses, may conclude to exit certain segments and/or business lines. Further, in conjunction with these ongoing evaluations and analyses, the Company may decide to sell, merge or close certain branch facilities.

Overview

The Company reported net income for the three and six month periods ended June 30, 2008 of $1,462 and $8,640, respectively compared to net income of $7,086 and $12,702 for the corresponding 2007 periods. The decline in reported earnings for the periods presented was the result of deteriorating economic conditions during the second quarter of 2008 which impacted the Company’s residential construction and development loan portfolios. As a result, the Company increased its loan loss provision during the second quarter of 2008 to $11,019 which was further reflected in a 2008 year-to-date loan loss provision of $11,907. Non-accrual loans increased to $40,419 at June 30, 2008 compared with $29,901 at March 31, 2008 and $32,060 at December 31, 2007 while Other Real Estate Owned increased to $20,632 at June 30, 2008 from $9,252 at March 31, 2008 and $4,859 at December 31, 2007.

Late in the second quarter, the Company experienced the impact of further economic weaknesses in the Nashville and Knoxville markets concentrated primarily in the residential real estate construction and development segment of the loan portfolio. This segment of the portfolio totaled approximately $187 million at June 30, 2008 and represented approximately eight percent of total loans outstanding at that date. During mid-June, certain customers acknowledged liquidity concerns and as a result approximately $12 million of loans were immediately placed on non-accrual. Additionally an intensified effort was undertaken to review this segment of the portfolio for potential impairment based upon projected future cash flows of the borrowers. As a result of this intensified effort, an additional $23 million of current loans were identified and placed on non-accrual. In summary, 90 loans aggregating $35 million, pre-charge-off, were placed on non-accrual in June, the largest of which totaled $3.8 million.

Net interest income totaled $25,044 and improved sequentially from the first quarter of 2008 and from the second quarter of 2007 as well as reflecting a 19% year-to-date increase from the first six months of 2007. Additionally, non-interest income totaled $8,112 for the three months ended June 30, 2008, an improvement of 11% over the first quarter of the year. On a year-to-date basis, non-interest income was $15,418 at June 30, 2008, up 30% over the same period a year ago. Non-interest expenses were $20,140 for the second quarter of 2008, up $579 from the first quarter of the year, and included $1,185 of OREO write-downs during the current quarter. Non-interest expense levels for the first half of 2008 totaled $39,701, reflecting an increase of 29% over the same period a year ago principally as a result of six months normal operating costs associated with the Company’s May 2007 acquisition of CVBG, only two months of costs were included in the 2007 period.

Net charge-offs for the quarter totaled $9,595 compared with net charge-offs of $1,072 during the first quarter of 2008 and net charge-offs of $10,398 during the fourth quarter of 2007. Non-performing assets were $61,212 at June 30, 2008 compared with $39,308 at March 31, 2008 and $36,937 at year end 2007. The majority of the increase in non-performing assets resulted from the further deterioration in the Company’s residential real estate construction and development loan portfolio described above as the economy continued to soften in the Nashville and Knoxville markets during the second quarter stressing borrowers’ liquidity. At June 30, 2008 the Company’s non-performing loans to total loans ratio was 1.73% compared with 1.29% at March 31, 2008 and 1.36% at December 31, 2007. Non-performing assets to total assets reflected a ratio of 2.03% at June 30, 2008 compared with 1.35% at March 31, 2008 and 1.25% at December 31, 2007. The Company’s loan loss reserve to loans was 1.51% at June 30, 2008 compared with 1.45% at both March 31, 2008 and December 31, 2007.

At June 30, 2008, the Company had total consolidated assets of $3,018,536, total consolidated deposits of $2,260,950, total consolidated loans, net of unearned income, of $2,347,241 and total consolidated shareholders’ equity of $326,427. The Company’s annualized return on average shareholders’ equity for the three and six months ended June 30, 2008 was 1.76% and 5.25%, respectively, and its annualized return on average total assets was 0.20% and 0.59%, respectively. The Company expects that its total assets and total consolidated loans, net of unearned interest, will remain stable or decline slightly over the remainder of 2008.

Critical Accounting Policies and Estimates

The Company’s consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods.

Management continually evaluates the Company’s accounting policies and estimates it uses to prepare the consolidated financial statements. In general, management’s estimates are based on historical experience, information from regulators and third party professionals and various assumptions that are believed to be reasonable under the existing facts and circumstances. Actual results could differ from those estimates made by management.

The Company believes its critical accounting policies and estimates include the valuation of the allowance for loan losses and the fair value of financial instruments and other accounts. Based on management’s calculation, an allowance of $35,351, or 1.51% of total loans, net of unearned income, was an adequate estimate of losses inherent in the loan portfolio as of June 30, 2008. This estimate resulted in a provision for loan losses in the income statement of $11,019 and $11,907, respectively, for the three and six months ended June 30, 2008. If the economic conditions, loan mix and amount of future charge-offs differ significantly from those assumptions used by management in making its determination, the allowance for loan losses and provision for loan losses on the income statement could be materially affected.

The consolidated financial statements include certain accounting disclosures that require management to make estimates about fair values. Independent third party valuations are used for securities available for sale and securities held to maturity as well as acquisition purchase accounting adjustments. Estimates of fair value are used in the accounting for loans held for sale, goodwill and other intangible assets. Estimates of fair values are used in disclosures regarding stock compensation, commitments, and the fair values of financial instruments. Fair values are estimated using relevant market information and other assumptions such as interest rates, credit risk, prepayments and other factors. The fair values of financial instruments are subject to change as influenced by market conditions.

Changes in Results of Operations

Net Income. Net income for the three months ended June 30, 2008 was $1,462, as compared to $7,086 for the same period in 2007. This decrease of $5,624, or 79% resulted primarily from a $9,760 increase in the provision for loan losses reflecting deterioration in the Nashville and Knoxville markets of the residential real estate construction and development loan portfolio during the quarter. In addition the Bank wrote-down $1,185 of Other Real Estate Owned (“OREO”) through noninterest expense during the second quarter of 2008.

Net interest income for the three months ended June 30, 2008 was $25,044, as compared to $22,933 for the same period in 2007. This increase of $2,111 in net interest income resulted primarily from higher earning asset volume arising primarily from the CVBG acquisition and organic growth in the loan portfolio. During this period the net interest margin declined by 45 basis points to 3.92% at June 30, 2008 from 4.37% at June 30, 2007 reflecting the downward movement in market interest rates resulting from initiatives undertaken by the Federal Open Market Committee (“FOMC”) to reduce market interest rates. Non-interest income rose 25% from the second quarter of 2007 and totaled $8,112 for the three months ended June 30, 2008. The principal driver of this increase was the ongoing success of the Company’s High Performance Checking product. During the second quarter of 2008, the Company opened 3,840 net new checking accounts compared with 3,216 opened during the same period a year ago. Partially offsetting the increases in net interest income and non-interest income was a $3,431, or 21%, increase in total noninterest expense from $16,709 for the three months ended June 30, 2007 to $20,140 for the same period of 2008. This change is primarily attributable to the increased recurring operating costs associated with the greater size of the Company’s operations due to the CVBG acquisition.

Net income for the six months ended June 30, 2008 was $8,640 compared to $12,702 for the same period in 2007. The decrease of $4,062 reflects substantially the same factors that affected the quarter ended June 30, 2008.

Net Interest Income. The largest source of earnings for the Company is net interest income, which is the difference between interest income on earning assets and interest expense on deposits and other interest-bearing liabilities. The primary factors which affect net interest income are changes in volume and rates on interest-earning assets and interest-bearing liabilities, which are affected in part by management’s responses to changes in interest rates through asset/liability management. During the three months ended June 30, 2008, net interest income was $25,044, as compared to $22,933 for the same period in 2007, representing an increase of 9%.

The Company’s average balance for interest-earning assets increased 22% from $2,117,358 for the three months ended June 30, 2007 to $2,591,822 for the three months ended June 30, 2008. The Company experienced a 19% growth in average loan balances from $1,962,127 for the three months ended June 30, 2007 to $2,340,923 for the three months ended June 30, 2008 and a 60% increase in average investment securities balances from $154,110 for the three months ended June 30, 2007 to $246,541 for the three months ended June 30, 2008. The growth in loans and investment securities can be primarily attributed to the CVBG acquisition that took place during the middle of the second quarter of 2007 and the continued organic loan growth during 2007 of the Company. Please refer to Note 6 of the “Notes to Condensed Consolidated Financial Statements” for more information on interest-earning assets acquired in the CVBG acquisition.

The Company’s average balance for interest-bearing liabilities increased 28% from $1,878,737 for the three months ended June 30, 2007 to $2,401,297 for the three months ended June 30, 2008. The Company experienced a 22% increase in average interest-bearing deposits from $1,567,701 for the three months ended June 30, 2007 to $1,908,542 for the three months ended June 30, 2008. The Company’s CVBG acquisition in the second quarter of 2007 is the primary reason for the growth in deposits. Please refer to Note 6 of the “Notes to Condensed Consolidated Financial Statements” for more information on interest-bearing liabilities acquired in the CVBG acquisition.

The Company’s yield on loans (the largest component of interest-earning assets) decreased by 135 basis points from the second quarter of 2007 to the second quarter of 2008. Approximately one-half of the Company’s loan portfolio is set at variable rates and was impacted by the result of the FOMC’s action to lower market interest rates by 325 basis points during this period of time.

		Beginning				Increase/				Ending
FOMC Meeting Date		Rate				Decrease				Rate
March 21, 2007			5.25	%			0.00	%			5.25	%
May 9, 2007			5.25	%			0.00	%			5.25	%
June 28, 2007			5.25	%			0.00	%			5.25	%
August 7, 2007			5.25	%			0.00	%			5.25	%
September 18, 2007			5.25	%			(0.50	%)			4.75	%
October 31, 2007			4.75	%			(0.25	%)			4.50	%
December 11, 2007			4.50	%			(0.25	%)			4.25	%
January 22, 2008			4.25	%			(0.75	%)			3.50	%
January 30, 2008			3.50	%			(0.50	%)			3.00	%
March 18, 2008			3.00	%			(0.75	%)			2.25	%
April 30, 2008			2.25	%			(0.25	%)			2.00	%
June 25, 2008			2.00	%			0.00	%			2.00	%

The Company’s cost of interest-bearing liabilities decreased by 106 basis points from the second quarter ended June 30, 2007 to the second quarter ended June 30, 2008. The velocity of change on fixed maturity interest-bearing liabilities is slower than the immediate change on variable rate assets. The re-pricing characteristics of this portion of interest-bearing liabilities which comprise 64% of total interest-bearing liabilities will lag behind market interest rate changes especially in a rapidly changing interest rate environment.

For the six months ended June 30, 2008, net interest income increased by $7,762, or 19%, to $49,516 from $41,754 for the same period in 2007, reflecting the acquisition of CVBG, and the same trends outlined above with respect to the three months ended June 30, 2008 were observed.

The following table sets forth certain information relating to the Company’s consolidated average interest-earning assets and interest-bearing liabilities and reflects the average yield on assets and average cost of liabilities for the periods indicated. These yields and costs are derived by dividing income or expense by the average daily balance of assets or liabilities, respectively, for the periods presented.

		Three Months Ended
		June 30,
		2008												2007
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Interest-earning assets:
Loans(1) (2)		$	2,340,923			$	39,421				6.77	%		$	1,962,127			$	39,703				8.12	%
Investment securities (2)			246,541				3,439				5.61	%			154,110				2,182				5.68	%
Other short-term investments			4,358				22				2.03	%			1,121				12				4.29	%
Total interest-earning assets		$	2,591,822			$	42,882				6.65	%		$	2,117,358			$	41,897				7.94	%
Noninterest earning assets			352,299												230,119
Total assets		$	2,944,121											$	2,347,477
Interest-bearing liabilities:
Deposits:
Interest checking, savings and money market		$	675,467			$	2,255				1.34	%		$	693,235			$	4,865				2.81	%
Time deposits			1,233,075				11,122				3.63	%			874,466				10,147				4.65	%
Total interest-bearing deposits		$	1,908,542			$	13,377				2.82	%		$	1,567,701			$	15,012				3.84	%
Securities sold under repurchase agreements and short-term borrowings			157,317				700				1.79	%			67,307				768				4.58	%
Notes payable			246,776				2,565				4.18	%			192,668				2,352				4.90	%
Subordinated debentures (3)			88,662				1,008				4.57	%			51,061				718				5.64	%
Total interest-bearing liabilities		$	2,401,297			$	17,650				2.96	%		$	1,878,737			$	18,850				4.02	%
Noninterest bearing liabilities:
Demand deposits			186,136												180,185
Other liabilities			23,311												36,566
Total noninterest bearing liabilities			209,447												216,751
Total liabilities			2,610,744												2,095,488
Shareholders’ equity			333,377												251,989
Total liabilities and shareholders’ Equity		$	2,944,121											$	2,347,477
Net interest income						$	25,232											$	23,047
Interest rate spread											3.70	%											3.91	%
Net yield on interest-earning assets											3.92	%											4.37	%