Green Bankshares, Inc. the Greeneville-based holding company of GreenBank, announced this week that due to the current uncertain economic environment, the bank "has decided to suspend the payment of cash dividends to common shareholders in order to prudently preserve capital levels."

Stan Puckett, Green Bankshares' president and CEO, said in press release, "Although we are beginning to see small signs of economic improvement in our markets, significant challenges continue to lie ahead as we move through this recession.

"Given the ongoing uncertainties in this environment, it is extremely important to maintain our strong capital levels and, after careful deliberation, the board of directors and management have concluded that the decision to suspend the cash dividend on our common stock is the prudent course of action, Puckett said"

Answering a later question, Puckett said that in the 20 years he has been at the bank, it is the first time the bank has not paid a quarterly dividend.

Green Bankshares, Inc., with total assets of approximately $2.796 billion as of March 31, is the holding company for GreenBank.

Before the country's recession began, which has hit banks and many other businesses hard, Greene Bankshares had reported total assets of approximately $3.1 billion.

GreenBank, which traces its origin to 1890, has 63 branches across East and Middle Tennessee, and one branch each in Bristol, Va., and Hot Springs, N.C.

The bank 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.