Tennessee

Jefferson Bancshares Inc. of Morristown, Tenn., restated its last quarter as a loss after its take on bad investments and loans worsened.

Green Bankshares Inc. in Greenville, Tenn., reported a net loss of $12.4 million for the second quarter as it prepares to sell to North American Financial Holdings Inc.

Tennessee Commerce Bancorp Inc. in Franklin will not be required to restate its 2010 earnings after all, but it is under orders to boost its capital ratios.

The $13.5 billion-asset company said this week that it will shutter nine branches in Arkansas, eight in Mississippi — including two in its headquarters city — three in Tennessee, and one each in Texas, Alabama and Missouri.

The acquisition of a 90.1% stake in Green Bankshares would be North American Financial's sixth since the holding company was created last year to buy failed or struggling banks.

Battered by problem loans, Tennessee Commerce said it lost $3.2 million in the first quarter. By comparison, the company earned $553,000 in the fourth quarter of 2010.

The Federal Reserve Board has voted to allow Goldman Sachs Group Inc. to retain an 9.8% stake in a small Tennessee banking company. Goldman Sachs Investment Partners Master Fund LP made the investment in the $589 million-asset Avenue Financial Holdings Inc. in Nashville in 2007.

Cornerstone Bancshares Inc. in Chattanooga, Tenn., said Friday that losses narrowed 42.1% in 2010. The $440 million-asset company posted a $4.7 million loss for the year, compared with an $8.2 million loss in 2009.

The net loss at Green Bankshares Inc. in Greenville, Tenn., widened to $52.8 million in the fourth quarter from $76,000 a year earlier.

Tennessee Commerce Bancorp Inc. in Franklin said its fourth-quarter earnings fell 56% from a year earlier, to $553,000, as noninterest expenses increased.

Several banks rushed to repay investments under the Troubled Asset Relief Program in December, but hundreds head into the new year desperate for an exit strategy, even if it means selling.

BankEast in Knoxville, Tenn., has received a prompt corrective action directive from the Federal Reserve due to its undercapitalized status.

It was another busy — and costly — night for regulators in the Southeast. Of the nation's six failures Friday — bringing the year's total to 157 — three were in Georgia and one was in Florida, continuing the onslaught the two states have suffered in the crisis.

Community Trust Bancorp Inc. in Pikeville, Ky., completed its purchase of LaFollette National Corp. in LaFollette, Tenn., the companies announced.

Under an informal agreement with regulators, Green Bankshares Inc. in Greeneville, Tenn., has suspended dividend payments, even those owed to the Treasury Department.

The Federal Reserve issued enforcement actions Tuesday against the bank holding companies First Security Group Inc. and Butte State Co.

MidSouth Bank in Murfreesboro, Tenn., was well capitalized at the end of the second quarter and the Federal Reserve wants to make sure it stays that way.

Pinnacle Financial Partners Inc. in Nashville said Wednesday that it lost $27.8 million in the second quarter after reducing the value of some deferred tax assets.

BancTenn Corp. last week filed an application with the Federal Reserve to form a bank holding company in order to acquire up to 20% of a commercial bank in North Carolina.

The $3.2 billion-asset company announced late Tuesday that it had agreed to buy the privately held LaFollette First National Corp. for $16.1 million in cash, or $650 a share, about 1.05 times LaFollette's tangible book value.