North Valley Bancorp (NOVB) 425 Business combination disclosure

Exhibit 99.1

	Filed by TriCo Bancshares pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-6 under the Securities Exchange Act of 1934 Subject Company: North Valley Bancorp. Commission File No.: 000-10652
PRESS RELEASE	Contact:            Richard P. Smith
For Immediate Release	President & CEO (530)898-0300

TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS

CHICO, Calif. – (July 28, 2014) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $4,859,000, or $0.30 per diluted share, for the three months ended June 30, 2014. These results compare to earnings of $6,325,000, or $0.39 per diluted share reported by the Company for the three months ended June 30, 2013.

The following is a summary of the components of the Company’s consolidated net income for the periods indicated:

	Three months ended June 30,
(dollars in thousands)	2014			2013			$ Change			% Change
Net Interest Income	$	27,343		$	24,589		$	2,754			11.2	%
Provision for loan losses		(1,708	)		(614	)		(1,094	)		178.2	%
Noninterest income		7,877			10,131			(2,254	)		(22.2	%)
Noninterest expense		(25,116	)		(23,509	)		(1,607	)		6.8	%
Provision for income taxes		(3,537	)		(4,272	)		735			(17.2	%)
Net income	$	4,859		$	6,325		($	1,466	)		(23.2	%)

The following is a summary of certain of the Company’s consolidated assets and deposits as of the periods indicated:

	As of June 30,
(dollars in thousands)	2014		2013		$ Change		% Change
Total assets	$	2,724,481	$	2,587,931	$	136,550		5.3	%
Total loans	$	1,738,586	$	1,652,040	$	86,546		5.2	%
Total investments	$	525,598	$	222,325	$	303,273		136.4	%
Total deposits	$	2,385,196	$	2,266,702	$	118,494		5.2	%

The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	June 30, 2014								March 31, 2014								June 30, 2013
	Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate
Assets
Earning assets
Loans	$	1,714,061	$	24,433			5.70	%	$	1,671,231	$	23,738			5.68	%	$	1,608,511	$	23,883			5.94	%
Investments - taxable		478,904		3,594			3.00	%		390,230		2,976			3.05	%		164,907		1,229			2.98	%
Investments - nontaxable		16,102		187			4.65	%		17,618		218			4.95	%		17,108		240			5.61	%
Cash at Federal Reserve and other banks		350,229		274			0.31	%		473,833		309			0.26	%		632,292		494			0.31	%
Total earning assets		2,559,296		28,488			4.45	%		2,552,912		27,241			4.27	%		2,422,818		25,846			4.27	%
Other assets, net		178,338								184,852								161,916
Total assets	$	2,737,634							$	2,737,764							$	2,584,734
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits	$	550,372		115			0.08	%	$	546,998		121			0.09	%	$	518,961		125			0.10	%
Savings deposits		853,643		263			0.12	%		840,221		257			0.12	%		782,339		246			0.13	%
Time deposits		268,352		390			0.58	%		280,968		404			0.58	%		322,668		484			0.60	%
Other borrowings		6,217		1			0.06	%		6,461		1			0.06	%		7,596		1			0.05	%
Trust preferred securities		41,238		306			2.97	%		41,238		304			2.95	%		41,238		311			3.02	%
Total interest-bearing liabilities		1,719,822		1,075			0.25	%		1,715,886		1,087			0.25	%		1,672,802		1,167			0.28	%
Noninterest-bearing deposits		722,779								731,731								635,503
Other liabilities		34,216								35,262								36,444
Shareholders’ equity		260,817								254,885								239,985
Total liabilities and shareholders’ equity	$	2,737,634							$	2,737,764							$	2,584,734
Net interest rate spread							4.20	%							4.02	%							3.99	%
Net interest income/net interest margin (FTE)				27,413			4.28	%				26,154			4.10	%				24,679			4.07	%
FTE adjustment				(70	)							(82	)							(90	)
Net interest income (not FTE)			$	27,343							$	26,072							$	24,589

Net interest income (FTE) during the second quarter of 2014 increased $2,734,000 (11.1%) from the same period in 2013 to $27,413,000. The increase in net interest income (FTE) was due primarily to a $312,991,000 (172%) increase in the average balance of investments to $495,006,000, and a $105,550,000 (6.6%) increase in the average balance of loans to $1,714,061,000 that were partially offset by a 24 basis point decrease in the average yield on loans from 5.94% during the three months ended June 30, 2013 to 5.70% during the three months ended June 30, 2014. During much of 2013 and the six months ended June 30, 2014, the Company deployed some of its excess cash previously held as Federal funds sold into higher yielding investments while maintaining an appropriate level of interest rate risk. The increase in average loan balances was due to organic loan growth and the purchase of $19,690,000 and $62,698,000 of single family residential real estate loans during the second quarters of 2014 and 2013, respectively. The decrease in average loan yields was due primarily to declines in market yields on new and renewed loans compared to yields on repricing, maturing, and paid off loans. The increases in average investment and loan balances added $2,325,000 and $1,567,000 to net interest income (FTE) while the decrease in average loan yields reduced net interest income (FTE) by $1,017,000 compared to the year-ago quarter.

Loans acquired through purchase or acquisition of other banks are classified as Purchased Not Credit Impaired (PNCI), Purchased Credit Impaired – cash basis (PCI – cash basis), or Purchased Credit Impaired – other (PCI – other). Loans not acquired in an acquisition or otherwise “purchased” are classified as “originated”. Often, such purchased loans are purchased at a discount to face value, and part of this discount is accreted into (added to) interest income over the remaining life of the loan. Generally, as time goes on, the effect of this discount accretion decreases as these purchased loans mature or pay off early. Further details regarding interest income from loans, including fair value discount accretion, may be found under the heading “Supplemental Loan Interest Income Data” in the Consolidated Financial Data table at the end of this press release.

The Company provided $1,708,000 for loan losses during the three months ended June 30, 2014 versus a provision of $614,000 during the three months ended June 30, 2013. During the three months ended June 30, 2014, the Company refined the method it uses to evaluate historical losses for the purpose of estimating the allowance for unimpaired loans. In the third quarter of 2010, the Company moved from a six point grading system (Grades A-F) to a nine point risk rating system (Risk Ratings 1-9), primarily to allow for more distinction within the “Pass” risk rating (risk ratings 2-5). As there was not initially sufficient loss experience within the nine point scale to complete a migration analysis for all nine risk ratings, all loans risk rated Pass or 2-5 were grouped together, a loss rate was calculated for that group, and that loss rate was established as the loss rate for risk rating 4. The reserve ratios for risk ratings 2, 3 and 5 were then interpolated from that figure. As of June 30, 2014, the Company was able to compile twelve quarters of historical loss information for all risk ratings, and use that information to calculate the loss rates for each of the nine risk ratings without interpolation. This refinement led to an increase of $1,438,000 in the allowance for unimpaired loans and provision for loan losses for unimpaired loans as of June 30, 2014. This increase in the allowance for unimpaired loans was driven primarily by consumer loans with a risk rating of 5 or “Pass-Watch”. Excluding this refinement in methodology, the provision for loan losses would have been $270,000 for the three months ended June 30, 2014. In general, the credit quality of the Company’s loans continued to improve during the quarter ended June 30, 2014 due to improvements in collateral values and estimated cash flows related to nonperforming originated loans and purchased credit impaired loans, reductions in nonperforming originated loans and purchased credit impaired loans, and decreases in loss histories for performing originated loans compared to year-ago levels.

Subsequent to June 30, 2014, the following events occurred: on July 9, 2014 the Company recovered $769,000 of an originated residential construction loan that was previously charged off. This recovery will be recorded during the quarter ended September 30, 2014; on July 21, 2014 the Company received $2,500,000 representing the complete payoff of all principal and interest due on a purchased credit impaired commercial real estate loan that was accounted for as part of a pool of loans. If there is no deterioration in estimated future cash flows for the other loans in this pool from June 30, 2014 to September 30, 2014, the existing allowance for loan losses for this pool will be completely eliminated via a reversal of provision for loan losses of $698,000 during the quarter ended September 30, 2014.

The following table presents the key components of noninterest income for the periods indicated:

	Three months ended June 30,
(dollars in thousands)	2014			2013			$ Change			% Change
Service charges on deposit accounts		2,724			3,277		($	553	)		(16.9	%)
ATM fees and interchange		2,192			2,233			(41	)		(1.8	%)
Other service fees		533			562			(29	)		(5.2	%)
Mortgage banking service fees		421			430			(9	)		(2.1	%)
Change in value of mortgage servicing rights		(351	)		191			(542	)		(283.8	%)
Total service charges and fees		5,519			6,693			(1,174	)		(17.5	%)
Gain on sale of loans		514			1,590			(1,076	)		(67.7	%)
Commission on NDIP		843			841			2			0.2	%
Increase in cash value of life insurance		400			380			20			5.3	%
Change in indemnification asset		(93	)		(314	)		221			(70.4	%)
Gain on sale of foreclosed assets		241			615			(374	)		(60.8	%)
Other noninterest income		453			326			127			39.0	%
Total other noninterest income		2,358			3,438			(1,080	)		(31.4	%)
Total noninterest income	$	7,877		$	10,131		($	2,254	)		(22.2	%)

Noninterest income decreased $2,254,000 (22.2%) to $7,877,000 during the three months ended June 30, 2014 compared to the three months ended June 30, 2013. The decrease in noninterest income was due primarily to a $1,076,000 (67.7%) decrease in gain on sale of loans to $514,000, a $553,000 (16.9%) decrease in service charges on deposit accounts, a $542,000 (284%) decrease in change in value of mortgage servicing rights, and a $374,000 (60.8%) decrease in gain on sale of foreclosed assets. The decrease in gain on sale of loans was primarily due to the

increase in residential real estate mortgage rates that occurred in May 2013 and resulted in a significant decrease in mortgage refinance activity. This decrease in mortgage refinance activity resulted in a significant decrease in newly originated mortgages for the Company to sell. The decrease in service charges on deposit accounts was primarily due to reduced customer overdrafts and a resulting decrease in non-sufficient funds fees. The decrease in the change in value of mortgage servicing rights was due primarily to a decrease in the balance of mortgages serviced during the quarter ended June 30, 2014 compared to an increase in such balances during the quarter ended June 30, 2013, and a large decrease in the estimated prepayment speed of such mortgages during the three months ended June 30, 2013 versus a slight increase in estimated mortgage prepayment speeds during the three months ended June 30, 2014. An increase in prepayment speed decreases the value of mortgage servicing rights and a decrease in mortgage prepayment speed increases the value of mortgage servicing rights. Mortgage prepayment speed generally increases when market rates for mortgages decrease, and vice versa. The decrease in gain on sale of foreclosed assets was due to a reduced balance of foreclosed assets compared to the year-ago period.

The following table presents the key components of the Company’s noninterest expense for the periods indicated:

	Three months ended June 30,
(dollars in thousands)	2014			2013		$ Change			% Change
Salaries		9,008			8,508	$	500			5.9	%
Commissions and incentives		1,205			1,299		(94	)		(7.2	%)
Employee benefits		3,104			3,083		21			0.7	%
Total salaries and benefits expense		13,317			12,890		427			3.3	%
Occupancy		1,802			1,753		49			2.8	%
Equipment		1,060			913		147			16.1	%
Change in reserve for unfunded commitments		(185	)		35		(220	)		(628.6	%)
Data processing and software		1,350			1,280		70			5.5	%
Telecommunications		713			587		126			21.5	%
ATM network charges		710			679		31			4.6	%
Professional fees		1,518			695		823			118.4	%
Advertising and marketing		341			415		(74	)		(17.8	%)
Postage		221			133		88			66.2	%
Courier service		224			255		(31	)		(12.2	%)
Intangible amortization		52			52		0			0.0	%
Operational losses		150			122		28			23.0	%
Provision for foreclosed asset losses		4			546		(542	)		(99.3	%)
Foreclosed asset expense		151			163		(12	)		(7.4	%)
Assessments		481			543		(62	)		(11.4	%)
Other		3,207			2,448		759			31.0	%
Total other noninterest expense		11,799			10,619		1,180			11.1	%
Total noninterest expense	$	25,116		$	23,509	$	1,607			6.8	%

Salary and benefit expenses increased $427,000 (3.3%) to $13,317,000 during the three months ended June 30, 2014 compared to the three months ended June 30, 2013. Base salaries increased $500,000 (5.9%) to $9,008,000 during the three months ended June 30, 2014 versus the year-ago period despite a 0.1% decrease in the average number of full time equivalent employees from 727 to 726. The average number of full time equivalent employees decreased primarily due to reductions in staff from the closing of six branches since September 30, 2013 that were partially offset by increases in full time equivalent back office staff and management. The salary expense attributable to the added back office staff and management outweighed the reduction in salary expense attributable to the branch closings. Annual salary merit increases of approximately 2.5% also contributed to the increase in base salary expense. Incentive and commission related salary expenses decreased $94,000 (7.2%) to $1,205,000 during three months ended June 30, 2014 due primarily to decreases in production related incentives tied to reduced residential real estate mortgage loan originations and sales. Benefits expense, including retirement, medical and workers’ compensation insurance, and taxes, increased $21,000 (0.7%) to $3,104,000 during the three months ended June 30, 2014.

Other noninterest expense increased $1,180,000 (11.1%) to $11,799,000 during the three months ended June 30, 2014 compared to the three months ended June 30, 2013. The increase in other noninterest expense was due primarily a $823,000 (118%) increase in professional fees to $1,518,000, a $196,000 (7.4%) increase in occupancy

and equipment expenses to $2,862,000, and a $759,000 (31.0%) increase in other expenses to $3,207,000 that were partially offset by a $542,000 (99.3%) decrease in provision for foreclosed assets, and a $220,000 decrease in provision for losses on unfunded commitments. The increase in professional fees was mainly due to a $536,000 consulting expense related to outside card processing, the benefit of which is expected to be realized over the next several years via increased revenue and lower processing expense, and $245,000 of legal, accounting and consulting expenses related to the proposed merger with North Valley Bancorp (“North Valley”). The increase in other expenses was primarily due to $175,000 of system conversion planning expenses related to the proposed merger with North Valley, and $114,000 of leasehold improvement removal expenses related to two branches closed at the end of the quarter ended March 31, 2014 and one branch closed during the quarter ended June 30, 2014. During the three months ended June 30, 2014, the Company incurred a total of $420,000 of noninterest expense related to the proposed North Valley merger.

On January 21, 2014, the Company and North Valley announced that they entered into an Agreement and Plan of Merger and Reorganization under which North Valley will merge with and into the Company, with the Company as the surviving corporation. North Valley shareholders will receive a fixed exchange ratio of 0.9433 shares of TriCo Bancshares common stock for each share of North Valley common stock. The merger is expected to be completed in the third quarter of 2014, subject to approval of the merger by shareholders of both companies, receipt of required regulatory and other approvals and satisfaction of customary closing conditions.

In addition to the historical information contained herein, this press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The reader of this press release should understand that all such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Company’s actual results could differ materially from those suggested by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, interest rate fluctuations, economic conditions in the Company’s primary market area, demand for loans, regulatory and accounting changes, loan losses, expenses, rates charged on loans and earned on securities investments, rates paid on deposits, competition effects, fee and other noninterest income earned, whether and when shareholders and regulators approve the Company’s proposed merger with North Valley, the Company’s ability to effectively integrate the business of North Valley as anticipate following the merger, as well as other factors detailed in the Company’s reports filed with the Securities and Exchange Commission which are incorporated herein by reference, including the Form 10-K for the year ended December 31, 2013. These reports and this entire press release should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Company’s business. Any forward-looking statement may turn out to be wrong and cannot be guaranteed. The Company does not intend to update any of the forward-looking statements after the date of this release. Shareholders are urged to read the joint proxy statement/prospectus included in the registration statement on Form S-4, which the Company has filed with the SEC in connection the proposed merger because it contains important information about TriCo, North Valley, the merger and related matters, including additional risk and uncertainties

TriCo Bancshares and Tri Counties Bank are headquartered in Chico, California. Tri Counties Bank has a 39-year history in the banking industry. It operates 41 traditional branch locations and 19 in-store branch locations in 23 California counties. Tri Counties Bank offers financial services and provides a diversified line of products and services to consumers and businesses, which include demand, savings and time deposits, consumer finance, online banking, mortgage lending, and commercial banking throughout its market area. It operates a network of 66 ATMs and an automated Customer Service Department, available 24 hours a day, seven days a week. Brokerage services are provided by the Bank’s investment services affiliate, Raymond James Financial Services, Inc. For further information please visit the Tri Counties Bank web site athttp://www.tricountiesbank.com.

ADDITIONAL INFORMATION ABOUT THE PROPOSED MERGER TRANSACTION AND WHERE TO FIND IT

Investors and shareholder are urged to carefully review and consider each of TriCo’s and North Valley’s public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. The documents filed by TriCo with the SEC may be obtained free of charge at TriCo’s website at www.tricountiesbank.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from TriCo by requesting them in writing to TriCo Bancshares, 63 Constitution Drive, Chico, California 95973; Attention: Investor Relations, or by telephone at

(530) 898-0300. The documents filed by North Valley with the SEC may be obtained free of charge at North Valley’s website at www.novb.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from North Valley by requesting them in writing to North Valley Bancorp, 300 Park Marina Circle, Redding, California 96001, Attention: Corporate Secretary, or by telephone at (530) 226-2900.

TriCo has filed a registration statement with the SEC which includes a joint proxy statement of TriCo and North Valley and a prospectus of TriCo, and each party will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, investors and security holders of North Valley and TriCo are urged to carefully read the entire registration statement and joint proxy statement/prospectus, as well as any amendments or supplements to these documents, because they contain important information about the proposed transaction. A definitive joint proxy statement/prospectus was mailed to the shareholders of each company on or about July 3, 2014 seeking required shareholder approvals. Investors and security holders may obtain the registration statement and the joint proxy statement/prospectus free of charge from the SEC’s website or from TriCo or North Valley by writing to the addresses provided for each company set forth above.

TriCo, North Valley, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from TriCo and North Valley shareholders in favor of the approval of the transaction. Information regarding TriCo’s officers and directors is included in TriCo’s Form 10-K Annual Report for the fiscal year ended December 31, 2013 filed with the SEC and information regarding North Valley’s officers and directors is included in North Valley’s Form 10-K Annual Report for the fiscal year ended December 31, 2013 filed with the SEC. Descriptions of the interests of the directors and executive officers of TriCo and North Valley in the proposed merger are set forth in the proxy statement/prospectus and other relevant documents filed with the SEC.

TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands, except share data)

	Three months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Statement of Income Data
Interest income	$	28,418		$	27,159		$	27,462		$	27,536		$	25,756
Interest expense		1,075			1,087			1,123			1,169			1,167
Net interest income		27,343			26,072			26,339			26,367			24,589
Provision for (benefit from) loan losses		1,708			(1,355	)		172			(393	)		614
Noninterest income:
Service charges and fees		5,519			5,462			5,973			6,662			6,693
Other income		2,358			2,833			1,380			2,465			3,438
Total noninterest income		7,877			8,295			7,353			9,127			10,131
Noninterest expense:
Base salaries net of deferred loan origination costs		9,008			8,866			8,832			8,716			8,508
Incentive compensation expense		1,205			1,123			943			1,166			1,299
Employee benefits and other compensation expense		3,104			3,314			3,449			2,979			3,083
Total salaries and benefits expense		13,317			13,303			13,224			12,861			12,890
Other noninterest expense		11,799			10,014			11,654			10,755			10,619
Total noninterest expense		25,116			23,317			24,878			23,616			23,509
Income before taxes		8,396			12,405			8,642			12,271			10,597
Net income	$	4,859		$	7,365		$	5,236		$	7,361		$	6,325
Share Data
Basic earnings per share	$	0.30		$	0.46		$	0.33		$	0.46		$	0.39
Diluted earnings per share	$	0.30		$	0.45		$	0.32		$	0.45		$	0.39
Book value per common share	$	16.17		$	15.94		$	15.61		$	15.27		$	14.90
Tangible book value per common share	$	15.16		$	14.93		$	14.59		$	14.24		$	13.87
Shares outstanding		16,133,414			16,120,297			16,076,662			16,076,662			16,065,469
Weighted average shares		16,128,550			16,096,569			16,076,662			16,073,864			16,027,557
Weighted average diluted shares		16,310,463			16,322,295			16,333,476			16,230,160			16,134,510
Credit Quality
Nonperforming originated loans	$	37,164		$	44,334		$	45,131		$	53,261		$	52,661
Total nonperforming loans		44,200			51,968			53,216			61,384			61,466
Foreclosed assets, net of allowance		5,785			3,215			6,262			4,140			5,054
Loans charged-off		1,028			766			1,840			985			1,947
Loans recovered	$	967		$	2,197		$	574		$	1,119		$	1,065
Selected Financial Ratios
Return on average total assets		0.71	%		1.08	%		0.78	%		1.13	%		0.98	%
Return on average equity		7.45	%		11.56	%		8.41	%		12.08	%		10.54	%
Average yield on loans		5.70	%		5.68	%		5.93	%		6.14	%		5.94	%
Average yield on interest-earning assets		4.45	%		4.27	%		4.39	%		4.60	%		4.27	%
Average rate on interest-bearing liabilities		0.25	%		0.25	%		0.26	%		0.28	%		0.28	%
Net interest margin (fully tax-equivalent)		4.20	%		4.10	%		4.21	%		4.40	%		4.07	%
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans	$	69		$	203		$	255		$	140		$	129
Discount accretion PCI - other loans		811			984			893			898			732
Discount accretion PNCI loans		624			379			568			1,115			815
All other loan interest income		22,929			22,172			22,754			22,970			22,207
Total loan interest income	$	24,433		$	23,738		$	24,470		$	25,123		$	23,883

TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

	Three months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Balance Sheet Data
Cash and due from banks	$	344,383		$	502,251		$	598,368		$	541,150		$	592,155
Securities, available for sale		91,514			97,269			104,647			115,215			127,519
Securities, held to maturity		422,502			344,523			240,504			193,262			85,643
Federal Home Loan Bank Stock		11,582			9,163			9,163			9,163			9,163
Loans held for sale		1,671			1,119			2,270			3,247			6,582
Loans:
Commercial loans		137,341			119,418			131,878			133,616			128,410
Consumer loans		377,143			381,786			383,163			389,711			387,217
Real estate mortgage loans		1,167,856			1,126,298			1,107,863			1,091,475			1,097,446
Real estate construction loans		56,246			59,550			49,103			42,249			38,967
Total loans, gross		1,738,586			1,687,052			1,672,007			1,657,051			1,652,040
Allowance for loan losses		(39,968	)		(38,322	)		(38,245	)		(39,340	)		(39,599	)
Foreclosed assets		5,785			3,215			6,262			4,140			5,054
Premises and equipment		31,880			32,004			31,612			31,246			31,194
Cash value of life insurance		53,106			52,706			52,309			51,919			51,388
Goodwill		15,519			15,519			15,519			15,519			15,519
Intangible assets		779			831			883			935			987
Mortgage servicing rights		5,909			6,107			6,165			6,049			5,571
Indemnification (liability) asset		(37	)		(220	)		206			861			1,441
Accrued interest receivable		7,008			6,690			6,516			6,450			7,339
Other assets		34,262			35,277			35,880			35,239			35,935
Total assets	$	2,724,481			2,755,184			2,744,066			2,632,106			2,587,931
Deposits:
Noninterest-bearing demand deposits		720,743			728,492			789,458			656,266			645,461
Interest-bearing demand deposits		547,110			554,296			533,351			524,897			514,088
Savings deposits		854,127			856,811			798,986			811,182			791,978
Time certificates		263,216			271,521			288,688			300,966			315,175
Total deposits		2,385,196			2,411,120			2,410,483			2,293,311			2,266,702
Accrued interest payable		849			865			938			937			944
Reserve for unfunded commitments		2,045			2,230			2,415			2,875			3,210
Other liabilities		28,135			36,035			31,711			33,667			29,936
Other borrowings		6,075			6,719			6,335			14,626			6,575
Junior subordinated debt		41,238			41,238			41,238			41,238			41,238
Total liabilities		2,463,538			2,498,207			2,493,120			2,386,654			2,348,605
Total shareholders’ equity		260,943			256,977			250,946			245,452			239,326
Accumulated other comprehensive gain		2,188			1,802			1,857			132			49
Average loans		1,714,061			1,671,231			1,649,692			1,635,506			1,608,511
Average interest-earning assets		2,559,296			2,552,912			2,511,318			2,405,194			2,422,818
Average total assets		2,737,634			2,737,764			2,693,231			2,603,243			2,584,734
Average deposits		2,395,146			2,399,918			2,357,230			2,274,042			2,259,471
Average total equity	$	260,817		$	254,885		$	249,020		$	243,776		$	239,985
Total risk based capital ratio		14.6	%		14.8	%		14.8	%		14.9	%		14.7	%
Tier 1 capital ratio		13.4	%		13.6	%		13.5	%		13.6	%		13.5	%
Tier 1 leverage ratio		10.4	%		10.2	%		10.2	%		10.4	%		10.2	%
Tangible capital ratio		9.0	%		8.8	%		8.6	%		8.8	%		8.7	%