Green Bankshares rejects investor Niswonger's offer to invest capital

By Lisa Kerner

Charlotte, N.C., Nov. 10 - Green Bankshares, Inc.'s board of directors turned down the Oct. 26 unsolicited proposal from shareholder Scott Niswonger to invest additional capital.

"Our board remains committed to improving our business and building value for all of our shareholders," lead independent director Robert K. Leonard said in a company news release.

According to Leonard, GreenBank's estimated regulatory capital levels remained strong at Sept. 30, with tier 1 leverage at 10.49%, tier 1 risk-based capital at 13.17% and total risk-based capital at 14.43%, all of which surpass regulatory requirements.

As previously reported, Niswonger believed the company would benefit from an infusion of capital of between $25 million and $40 million.

Niswonger, with a 9.94% stake in the Greeneville, Tenn.-based bank holding company, also wanted to have input in the selection of the company's new chief executive officer, according to a prior filing with the Securities and Exchange Commission.

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