Green Bankshares Inc. in Greeneville, Tenn., is warning that it expects to report a fourth-quarter loss of up to $16 million because of deteriorating credit quality.

The company earned $2.7 million a year earlier.

In a press release issued late Tuesday, Stan Puckett, the chairman and chief executive officer of the $3 billion-asset company, attributed the projected loss to continued housing market weakness. Mr. Green said it would have to increase its provision for loan losses by about 160% from a year earlier, to an estimated $28 million to $30 million. Its nonperforming assets jumped about 110%, to a range of $75 million to $77 million, the company estimated. The surge came primarily in the residential real estate portfolio.

Green Bankshares said it expects to release its quarterly results about Jan. 22.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.