First Community Bancshares, Inc. Announces Second Quarter Earnings

BLUEFIELD, Va.--(BUSINESS WIRE)--First Community Bancshares, Inc. (NASDAQ:FCBC) (www.fcbinc.com) today reported second quarter earnings of $6.24 million, or $0.56 per diluted share. Return on average assets was 1.23% for the second quarter of 2008 and return on average equity was 12.08%. Year-to-date earnings were $12.55 million, or $1.13 per diluted share, representing 1.22% return on assets and 11.87% return on equity.

The Company has increased its commercial lending resources, and loans outstanding increased compared to March 31, 2008. The Company is currently seeing a strong pipeline of approved and prospective deals, which points towards further increases in the loan portfolio. Net interest margin also began to recover from 2007 levels increasing to 3.92% from 3.78% in the second quarter of 2007.

The Company reported excellent asset quality measures at June 30, 2008. At the close of the second quarter, nonaccrual loans remained low at $4.13 million, or 0.35%, of total loans. Other real estate owned was $500 thousand. Loan loss provision for the second quarter of 2008 was $937 thousand, and was driven by two specific commercial loan impairments identified late in the second quarter.

On July 1, 2008, the Company’s wholly-owned insurance agency subsidiary, GreenPoint Insurance Group, completed the acquisition of REL Insurance, in High Point, North Carolina. REL adds approximately $750 thousand in annual insurance commissions. Richard E. Lee, principal of REL, will assume a key position in operations at GreenPoint as the two are merged. GreenPoint, under the direction of its President, Shawn Cummings, now reports pro forma annual commission revenue of approximately $5.0 million.

Net Interest Income

Tax-equivalent net interest margin for the second quarter increased to 3.92%. Net interest income was down $389 thousand, or 2.29%, from the second quarter of 2007. Interest income was $27.43 million, a decrease of $4.55 million, or 14.22%, from second quarter 2007. The decrease was due primarily to decreases in loan and security yields and a decrease in average loans, a result of stronger underwriting standards. The yield on loans dropped to 6.78% from 7.49% and average loans decreased $72.88 million to $1.18 billion from second quarter 2007.

Second quarter interest expense decreased $4.16 million, or 27.78%, from 2007. Second quarter deposit costs decreased $2.63 million compared to the second quarter of 2007, while the average rate paid on interest-bearing deposits decreased 77 basis points to 2.55%. Throughout 2008, the Company has exercised discipline in pricing, which let to declining CD portfolio totals. Compared to 2007, interest costs on borrowings decreased $1.53 million to $3.69 million, while the average balance decreased $6.06 million. Second quarter cost of interest-bearing liabilities decreased 89 basis points compared to last year. Average interest bearing liabilities decreased $60.32 million, or 3.63%, compared with second quarter 2007. Also during the second quarter, the Company repaid a $50.00 million advance from the FHLB. The advance had a fixed rate of 3.64%, and the Company replaced the funding with lower cost sources.

Noninterest Income

Wealth management revenues increased $93 thousand, or 9.25%, compared with the second quarter of 2007 as trust revenue increased $68 thousand and investment advisory revenue increased $25 thousand. Service charges on deposit accounts increased $801 thousand, or 30.09%. Other service charges and fees increased $227 thousand, or 27.12%. Insurance commissions were $1.15 million for the second quarter of 2008. Insurance commissions are derived from GreenPoint Insurance Group, a September 2007 acquisition. Other operating income decreased 20.73% to $803 thousand.

Noninterest Expenses

Total non-interest expenses for the second quarter of 2008 increased $2.68 million, or 22.23%, from second quarter 2007. Salaries and benefits increased $1.42 million, or 22.95%, from the second quarter of 2007. GreenPoint accounted for approximately $567 thousand of the increase. The Company’s new Small Business Lending Division and new branches accounted for $135 thousand and $240 thousand of the increase, respectively. The Company also deferred $357 thousand less in salaries and benefits costs through FAS 91 as a result of lower levels of loan production, and saw increases in health care costs of $258 thousand (exclusive of GreenPoint). Occupancy and furniture and equipment expenses increased due to the new branches that were opened throughout 2007 and the addition of operating expenses at GreenPoint. Other non-interest expenses increased $787 thousand, or 19.65%, compared to the second quarter of 2007 and included $225 thousand of expenses at GreenPoint, $244 thousand of increased account promotion and marketing expenses, $189 thousand in increased consulting fee expenses, and $278 thousand in increased legal expenses. Increased legal expenses include $171 thousand associated with one-time costs incurred in abandoned deal charges. The second quarter efficiency ratio was 57.55% compared to 50.25% in 2007.

Asset Quality

Credit quality remains quite good. Total loan delinquencies as a percent of total loans were 0.91% compared with 0.65% at March 31, 2008, and 0.98% at December 31, 2007. The ratio of allowance for loan losses as a percent of loans held for investment increased to 1.14% compared with 1.09% at March 31, 2008, and 1.05% at December 31, 2007. Non-performing assets increased to $4.63 million compared with $3.54 million at March 31, 2008, and $3.47 million at December 31, 2007. Non-performing loans as a percentage of loans held for investment were 0.35% compared with 0.27% at March 31, 2008, and 0.24% at December 31, 2007.

The annualized net charge-off rate as a percent to average total loans remained at a low 14 basis points for the second quarter of 2008. Net charge-offs in the second quarter of 2008 were $366 thousand, down from $576 thousand in the second quarter of 2007. The Company made a provision for loan losses of $937 thousand in the second quarter of 2008 compared with no provision in the second quarter of 2007.

Balance Sheet

Since year-end 2007, consolidated assets have decreased $96.15 million to $2.05 billion. Included in that decrease is the prepayment of a $25.00 million FHLB advance, a decrease of $44.40 million in the loan portfolio, and a net decrease of $67.25 million in the investment portfolio. Total stockholders’ equity for the Company was $196.61 million, resulting in a book value per common share outstanding of $17.95 compared to $217.10 million and $19.61 per common share at December 31, 2007. The decrease in total equity principally reflects the increase in accumulated other comprehensive loss as a result of lower valuations on the Company’s securities portfolio and interest rate swap.

The second quarter cash dividend to shareholders was $0.28 per share. 2008 is expected to be the 17^th consecutive year of dividend increases to shareholders. During the second quarter of 2008, the Company repurchased 60,800 shares at an average cost of approximately $31.95 per share.

The Company will host an investor and media teleconference and webcast on Thursday, July 24, 2008, at 11:00 a.m. To access the teleconference, the toll-free number to call is [phone]. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Current News Releases section. The Company’s press release and financial summary will be available in this section, as well. Copies of the Company’s second quarter 2008 earnings press release and financial summary will also be made available upon request via fax, email or postal service mail. To request a copy, contact David D. Brown, Chief Financial Officer, at [phone].

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.05 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-eight locations and four wealth management offices in the five states of Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank, N. A. offers wealth management services through its Trust & Financial Services Division and Investment Planning Consultants, Inc., a registered investment advisory firm which offers wealth management and investment advice. The Company’s wealth management group managed assets with a market value of $831 million at June 30, 2008. First Community is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency located in High Point, North Carolina. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ Global Select Market under the symbol, “FCBC”. Additional investor information can be found on the Internet at www.fcbinc.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.

First Community Bancshares, Inc.		Three Months Ended						Six Months Ended
Consolidated Statements of Income		June 30,						June 30,
(In Thousands, Except Share and Per Share Data)(Unaudited)			2008			2007			2008			2007
Interest	Interest and fees on loans held for investment	$	19,891		$	23,404		$	41,128		$	46,923
Income	Interest on securities-taxable		5,467			6,030			11,534			11,011
	Interest on securities-nontaxable		2,004			2,150			4,067			4,062
	Interest on federal funds sold and deposits		71			395			251			669
	Total interest income		27,433			31,979			56,980			62,665
Interest	Interest on deposits		7,118			9,748			15,859			19,048
Expense	Interest on borrowings		3,690			5,217			8,136			9,588
	Total interest expense		10,808			14,965			23,995			28,636
	Net interest income		16,625			17,014			32,985			34,029
	Provision for loan losses		937			-			1,260			-
	Net interest income after provision for loan losses		15,688			17,014			31,725			34,029
Non-Interest	Wealth management income		1,098			1,005			1,997			2,023
Income	Service charges on deposit accounts		3,463			2,662			6,562			5,071
	Other service charges and fees		1,064			837			2,185			1,707
	Insurance commissions		1,146			-			2,490			-
	Gain on sale of securities		150			30			1,970			159
	Other operating income		803			1,013			1,661			1,802
	Total non-interest income		7,724			5,547			16,865			10,762
Non-Interest	Salaries and employee benefits		7,580			6,165			15,370			12,576
Expense	Occupancy expense of bank premises		1,256			1,020			2,420			2,077
	Furniture and equipment expense		973			780			1,874			1,603
	Amortization of intangible assets		158			105			318			208
	Prepayment penalty		-			-			1,647			-
	Other operating expense		4,792			4,005			9,413			7,769
	Total non-interest expense		14,759			12,075			31,042			24,233
	Income before income taxes		8,653			10,486			17,548			20,558
	Income tax expense		2,415			3,047			4,998			5,995
	Net income	$	6,238		$	7,439		$	12,550		$	14,563
	Basic earnings per common share (EPS)	$	0.57		$	0.66		$	1.14		$	1.29
	Diluted earnings per common share (DEPS)	$	0.56		$	0.66		$	1.13		$	1.28
	Weighted Average Shares Outstanding:
	Basic		10,992,301			11,260,868			11,011,116			11,260,126
	Diluted		11,073,440			11,320,227			11,091,714			11,334,486
	For the period:
	Return on average assets		1.23	%		1.40	%		1.22	%		1.41	%
	Return on average equity		12.08	%		13.56	%		11.87	%		13.45	%
	Return on average tangible equity		18.75	%		19.12	%		18.12	%		19.02	%
	Cash dividends per share	$	0.28		$	0.27		$	0.56		$	0.54
	At period end:
	Book value per share							$	17.95		$	19.25
	Market value							$	28.20		$	31.19

First Community Bancshares, Inc.
Quarterly Performance Summary		As of and for the Quarter Ended
Income Statements		June 30,		March 31,		December 31,		September 30,		June 30,
(In Thousands, Except Share and Per Share Data)(Unaudited)			2008		2008		2007		2007		2007
Interest	Interest and fees on loans held for investment	$	19,891	$	21,237	$	23,100	$	23,478	$	23,404
Income	Interest on securities-taxable		5,467		6,067		6,942		6,772		6,030
	Interest on securities-nontaxable		2,004		2,063		2,050		2,078		2,150
	Interest on federal funds sold and deposits		71		180		102		404		395
	Total interest income		27,433		29,547		32,194		32,732		31,979
Interest	Interest on deposits		7,118		8,741		9,626		10,083		9,748
Expense	Interest on borrowings		3,690		4,446		5,425		5,506		5,217
	Total interest expense		10,808		13,187		15,051		15,589		14,965
	Net interest income		16,625		16,360		17,143		17,143		17,014
	Provision for loan losses		937		323		717		-		-
	Net interest income after provision for loan losses		15,688		16,037		16,426		17,143		17,014
Non-Int	Wealth management income		1,098		899		949		908		1,005
Income	Service charges on deposit accounts		3,463		3,099		3,310		3,006		2,662
	Other service charges, commissions and fees		1,064		1,121		991		902		837
	Insurance commissions		1,146		1,344		1,142		-		-
	Gain on sale of securities		150		1,820		202		50		30
	Other operating income		803		858		1,455		1,154		1,013
	Total non-interest income		7,724		9,141		8,049		6,020		5,547
Non-Int	Salaries and employee benefits		7,580		7,790		6,728		6,544		6,165
Expense	Occupancy expense of bank premises		1,256		1,164		1,170		933		1,020
	Furniture and equipment expense		973		901		923		844		780
	Amortization of intangible assets		158		160		154		105		105
	Prepayment penalty		-		1,647		-		-		-
	Other operating expense		4,792		4,621		4,419		4,410		4,005
	Total non-interest expense		14,759		16,283		13,394		12,836		12,075
	Income before income taxes		8,653		8,895		11,081		10,327		10,486
	Income tax expense		2,415		2,583		3,328		3,011		3,047
	Net income	$	6,238	$	6,312	$	7,753	$	7,316	$	7,439
Per	Basic EPS	$	0.57	$	0.57	$	0.70	$	0.65	$	0.66
Share	Diluted EPS	$	0.56	$	0.57	$	0.69	$	0.65	$	0.66
	Cash dividends per share	$	0.28	$	0.28	$	0.27	$	0.27	$	0.27
	Weighted Average Shares Outstanding:
	Basic		10,992,301		11,029,931		11,120,938		11,179,322		11,260,868
	Diluted		11,073,440		11,107,610		11,205,292		11,230,220		11,320,227
	Actual shares outstanding at period end		10,954,078		11,012,574		11,069,646		11,175,550		11,232,466
	Book Value per share at period end	$	17.95	$	18.98	$	19.61	$	19.43	$	19.25
	Market Value per share at period end	$	28.20	$	36.42	$	31.89	$	36.23	$	31.19

First Community Bancshares, Inc.
Quarterly Balance Sheets
(Unaudited)	June 30,			March 31,			December 31,			September 30,			June 30,
		2008			2008			2007			2007			2007
(In Thousands)
Cash and due from banks	$	44,672		$	44,004		$	50,051		$	39,877		$	40,879
Interest-bearing deposits with banks		10,745			33,111			2,695			19,427			33,380
Securities available for sale		598,438			598,853			664,120			671,360			658,901
Securities held to maturity		10,511			12,075			12,075			12,548			13,177
Loans held for sale		1,522			2,116			811			2,294			1,818
Loans held for investment, net of unearned income		1,181,107			1,179,504			1,225,502			1,239,207			1,243,076
Less allowance for loan losses		13,433			12,862			12,833			13,190			13,934
Net loans		1,167,674			1,166,642			1,212,669			1,226,017			1,229,142
Premises and equipment		50,075			49,444			48,383			46,702			42,274
Other real estate owned		500			400			545			211			593
Interest receivable		9,992			9,742			12,465			13,289			12,892
Intangible assets		71,181			71,239			70,056			69,104			62,017
Other assets		88,377			77,487			75,968			73,817			73,522
Total Assets	$	2,053,687		$	2,065,113		$	2,149,838		$	2,174,646		$	2,168,595
Deposits:
Demand	$	224,716		$	224,097		$	224,087		$	224,297		$	241,423
Interest-bearing demand		172,623			172,864			153,570			143,719			143,080
Savings		312,148			305,725			327,691			348,457			333,855
Time		629,920			656,267			688,095			686,564			703,602
Total Deposits		1,339,407			1,358,953			1,393,443			1,403,037			1,421,960
Interest, taxes and other liabilities		18,695			22,293			21,454			20,120			21,000
Federal funds purchased		66,500			-			18,500			15,600			-
Securities sold under agreements to repurchase		215,610			208,000			207,427			226,784			217,987
FHLB and other indebtedness		216,862			266,889			291,916			291,942			291,387
Total Liabilities		1,857,074			1,856,135			1,932,740			1,957,483			1,952,334
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,499
Additional paid-in capital		108,926			108,896			108,825			108,794			108,633
Retained earnings		123,253			120,087			117,670			112,911			108,601
Treasury stock, at cost		(17,328	)		(15,457	)		(13,613	)		(10,051	)		(8,341	)
Accumulated other comprehensive loss		(29,737	)		(16,047	)		(7,283	)		(5,990	)		(4,131	)
Total Stockholders' Equity		196,613			208,978			217,098			217,163			216,261
Total Liabilities and Stockholders' Equity	$	2,053,687		$	2,065,113		$	2,149,838		$	2,174,646		$	2,168,595

First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)	As of and for the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2008			2008			2007			2007			2007
	(Dollars in Thousands)
Ratios
Return on average assets		1.23	%		1.21	%		1.43	%		1.34	%		1.40%
Return on average equity		12.08	%		11.66	%		13.95	%		13.31	%		13.56%
Return on average tangible equity		18.75	%		17.53	%		20.67	%		18.86	%		19.12%
Net interest margin		3.92	%		3.78	%		3.75	%		3.70	%		3.78%
Efficiency ratio for the quarter (a)		57.55	%		58.00	%		51.22	%		52.14	%		50.25%
Efficiency ratio year-to-date (a)		57.78	%		58.00	%		51.20	%		51.18	%		50.69%
Equity as a percent of total assets at end of period		9.57	%		10.12	%		10.10	%		9.99	%		9.97%
Average earning assets as a percentage of average total assets		88.83	%		89.10	%		89.61	%		90.23	%		90.47%
Average loans as a percentage of average deposits		88.10	%		87.68	%		88.49	%		87.91	%		88.82%
Average Balances
Investments	$	623,338		$	635,350		$	684,227		$	678,790		$	645,266
Loans		1,180,813			1,205,481			1,238,620			1,246,530			1,253,679
Earning assets		1,817,322			1,863,433			1,932,481			1,958,858			1,931,247
Total assets		2,045,773			2,091,397			2,156,484			2,171,036			2,134,612
Deposits		1,340,384			1,374,853			1,399,690			1,417,922			1,411,476
Interest-bearing deposits		1,122,680			1,161,881			1,178,833			1,188,470			1,176,940
Borrowings		478,361			477,903			516,635			515,775			484,410
Interest-bearing liabilities		1,601,041			1,639,784			1,695,468			1,704,245			1,661,350
Equity		207,660			217,679			220,520			218,049			219,989
Tax equivalent net interest income		17,726			17,491			18,265			18,281			18,186

(a)	Excludes securities gains/losses, intangible amortization, foreclosed property expenses, non-recurring income and expense items, and includes tax equivalency adjustment.

First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)	As of and for the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2008			2008			2007			2007			2007
	(Dollars in Thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	12,862		$	12,833		$	13,190		$	13,934		$	14,510
Provision for Loan Losses		937			323			717			-			-
Charge-offs		(1,198	)		(966	)		(1,482	)		(1,009	)		(911	)
Recoveries		832			672			408			265			335
Net charge-offs		(366	)		(294	)		(1,074	)		(744	)		(576	)
Ending balance	$	13,433		$	12,862		$	12,833		$	13,190		$	13,934
Summary of Asset Quality
Nonaccrual loans	$	4,126		$	3,137		$	2,923		$	2,869		$	2,910
Loans 90 days or more past due and still accruing		-			-			-			-			-
Total non-performing loans		4,126			3,137			2,923			2,869			2,910
Other real estate owned		500			400			545			211			593
Total non-performing assets	$	4,626		$	3,537		$	3,468		$	3,080		$	3,503
Restructured loans	$	231		$	239		$	245		$	253		$	256
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.35	%		0.27	%		0.24	%		0.23	%		0.23	%
Non-performing assets as a percentage of:
Total assets		0.23	%		0.17	%		0.16	%		0.14	%		0.16	%
Loans held for investment plus other real estate owned		0.39	%		0.30	%		0.28	%		0.25	%		0.28	%
Annualized net charge-offs as a percentage of average loans held for investment		0.12	%		0.10	%		0.34	%		0.24	%		0.18	%
Allowance for loan losses as a percentage of loans held for investment		1.14	%		1.09	%		1.05	%		1.06	%		1.12	%
Ratio of allowance for loan losses to nonaccrual loans		3.26			4.10			4.39			4.60			4.79

First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)		Three Months Ended June 30,
		2008						2007
						Yield/						Yield/
		Average		Interest		Rate		Average		Interest		Rate
		Balance			(1)	(1)		Balance			(1)	(1)
Earning Assets		(Dollars in Thousands)
Loans Held for Investment (2)		$	1,180,813	$	19,912	6.78	%	$	1,253,679	$	23,417	7.49	%
Securities Available for Sale			612,411		8,278	5.44	%		629,030		9,017	5.75	%
Held to Maturity Securities			10,927		273	10.05	%		16,236		322	7.95	%
Interest-bearing Deposits with Banks			13,171		71	2.17	%		32,302		395	4.90	%
	Total Earning Assets		1,817,322	$	28,534	6.31	%		1,931,247	$	33,151	6.89	%
Other Assets			228,451						203,365
	Total	$	2,045,773					$	2,134,612
Interest-bearing Liabilities
Interest-bearing Demand Deposits		$	174,100	$	65	0.15	%	$	147,570	$	118	0.32	%
Savings Deposits			308,344		1,188	1.55	%		324,759		1,776	2.19	%
Time Deposits			640,236		5,865	3.68	%		704,611		7,854	4.47	%
Fed Funds Purchased & Repurchase Agreements			213,700		1,063	2.00	%		228,856		2,206	3.87	%
FHLB Borrowings & Other Long-term Debt			264,661		2,627	3.99	%		255,554		3,011	4.73	%
	Total Interest-bearing Liabilities		1,601,041		10,808	2.72	%		1,661,350		14,965	3.61	%
Noninterest-bearing Demand Deposits			217,704						234,536
Other Liabilities			19,368						18,737
Stockholders' Equity			207,660						219,989
	Total	$	2,045,773					$	2,134,612
Net Interest Income				$	17,726					$	18,186
Net Interest Rate Spread (3)						3.59	%					3.28	%
Net Interest Margin (4)						3.92	%					3.78	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.

First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)		Six Months Ended June 30,
		2008						2007
						Yield/						Yield/
		Average		Interest		Rate		Average		Interest		Rate
		Balance			(1)	(1)		Balance			(1)	(1)
Earning Assets		(Dollars in Thousands)
Loans Held for Investment (2)		$	1,193,147	$	41,169	6.94	%	$	1,259,620	$	46,948	7.52	%
Securities Available for Sale			617,843		17,276	5.62	%		581,091		16,552	5.74	%
Held to Maturity Securities			11,501		515	9.00	%		17,991		711	7.97	%
Interest-bearing Deposits with Banks			17,887		251	2.82	%		27,788		669	4.85	%
	Total Earning Assets		1,840,378	$	59,211	6.47	%		1,886,490	$	64,880	6.94	%
Other Assets			228,202						199,588
	Total	$	2,068,580					$	2,086,078
Interest-bearing Liabilities
Interest-bearing Demand Deposits		$	168,138	$	140	0.17	%	$	146,770	$	229	0.31	%
Savings Deposits			317,702		2,675	1.69	%		322,223		3,449	2.16	%
Time Deposits			656,440		13,044	4.00	%		700,884		15,370	4.42	%
Fed Funds Purchased & Repurchase Agreements			207,550		2,575	2.49	%		221,695		4,241	3.86	%
FHLB Borrowings & Other Long-term Debt			270,583		5,561	4.13	%		225,082		5,347	4.79	%
	Total Interest-bearing Liabilities		1,620,413		23,995	2.98	%		1,616,654		28,636	3.57	%
Noninterest-bearing Demand Deposits			215,338						232,069
Other Liabilities			20,159						18,949
Stockholders' Equity			212,670						218,406
	Total	$	2,068,580					$	2,086,078
Net Interest Income				$	35,216					$	36,244
Net Interest Rate Spread (3)						3.49	%					3.37	%
Net Interest Margin (4)						3.85	%					3.87	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.