Green Bankshares, Inc. (NASDAQ: GRNB), the holding company for GreenBank, has reported net losses for both the third quarter and for the nine months that ended Sept. 30.

For the third quarter, a Green Bankshares news release stated, the Greeneville-based banking company announced a net loss of $7.7 million, or 59 cents per diluted share, "reflecting primarily higher credit costs as the company continues its efforts to identify credit quality issues in the loan portfolio."

Analysts surveyed by Thomson Reuters had expected a loss of $.20 per share, according to a news article Friday on the Knoxville News-Sentinel Web site.

For the first nine months of 2009, GreenBank reported a "net operating loss of $18,186,000, or $1.40 per diluted share, excluding the after-tax, non-recurring, non-cash goodwill impairment charge of $137,414,000 recorded in the second quarter of 2009 ...

"This compares with net income of $9,8743,00, or 76 cents per diluted share for the same period a year ago."

Stan Puckett, chairman and CEO of both Green Bankshares and GreenBank, said in a written statement, "Economic conditions remain challenging with high unemployment and weak real estate activity. We will continue to work aggressively to identify and address problem loans."

Puckett also said in the banking company's press release, "Although our third quarter results were disappointing, we are encouraged by the positive economic data that has been released recently and look forward to actively participating in the (economic) recovery when it occurs."

GreenBankshares' report, which was released after the close of business on Friday, also included a number of other highlights, including some good news. Among the highlights:

* "Net interest income increased 1 percent from the second quarter of 2009, while the net interest margin stabilized at 3.33 percent;

* "The quarter's loan loss provision of $18.5 million was down from $24.4 million in the second quarter of 2009 and modestly exceeded net charge-offs; the loan loss reserve increased to 2.39 percent of outstanding loans from 2.30 percent at the end of the second quarter;

* "Non-performing assets (NPAs) totaled $125.0 million at Sept. 30, 2009, declining $4.1 million or 3 percent from the level at June 20, 2009; this improvement reflected the first decline in NPAs since the second quarter of 2008; ...

* "Loans past due 30 to 89 days, excluding non-accrual loans, declined 0.84 percent of loans at June 30, 2009, to 0.76 percent of loans at Sept. 30, 2009."

* "The company's estimated regulatory capital levels remained strong at Sept. 30, 2009, with Tier 1 Leverage at 10.49 percent, Tier 1 Risk-Based Capital at 13.17 percent, and Total Risk-Based Capital at 14.43 percent; the tangible common equity to tangible assets ratio was 5.42 percent at Sept. 30, 2009."

In April 2009, the bank announced that the first quarter had been profitable, a welcome turnaround from the fourth quarter of 2008.

But there was a net loss in the second quarter, and in June, Green Bancshares, Inc., announced that, because of the uncertain economic environment, the bank "has decided to suspend the payment of cash dividends to common shareholders in order to prudently preserve capital levels."

It was the first time in Puckett's two decades at the bank's helm that the bank has not paid a quarterly dividend.

Puckett, 53, announced in early September that he will retire as chairman and CEO of Green Bankshares and GreenBank, on March 31, 2010.

Bruce Campbell, chairman of Green Bankshares' Nominating and Governance Committee and president and CEO of Forward Air Corporation, said then, "Under Stan's 21 years of leadership, GreenBank has experienced tremendous growth and advancement.

"During his tenure as CEO, Stan led the transformation of a small-town bank with seven branches and $188 million in assets to a publicly-traded company and the third largest bank headquartered in the state of Tennessee."

Green Bankshares now has assets exceeding $2 billion and operates 63 GreenBank branches, most in East and Middle Tennessee.

GreenBank also provides wealth management services through its GreenWealth Division and residential mortgage lending through its Mortgage Division.