Central Pacific Financial (CPF) 8-K Results of Operations and Financial Condition

Exhibit 99

Investor Contact:	David Morimoto	Media Contact:	Ann Takiguchi Marcos
	SVP & Treasurer		VP & PR/Communications Manager
	(808) 544-0627		(808) 544-0685
	david.morimoto@centralpacificbank.com		ann.takiguchi@centralpacificbank.com

NEWS RELEASE

CENTRAL PACIFIC FINANCIAL CORP. REPORTS 14% INCREASE IN NET INCOME

HONOLULU, July 25, 2006 — Central Pacific Financial Corp. (NYSE: CPF), parent company of Central Pacific Bank, today reported net income for the second quarter of 2006 of $20.4 million, or $0.66 per diluted share, compared to $17.9 million, or $0.58 per diluted share reported in the second quarter of 2005 and $19.3 million or $0.63 per diluted share reported in the first quarter of 2006.  The net income for the first quarter of 2006 included an after-tax charge of $1.3 million, or $0.04 per diluted share, in retirement expenses for a former senior executive.

Operating earnings, defined as the Company’s net income excluding nonrecurring merger-related expenses, net of tax, for the second quarter of 2006 was $20.4 million, or $0.66 per diluted share, as compared to the $18.2 million, or $0.59 per diluted share, recorded during the same period of 2005.  There were no nonrecurring merger-related expenses in the second quarter or first half of 2006, compared to $0.5 million in the second quarter of 2005 and $2.0 million in the first half of 2005.

Second Quarter Highlights

·Loans and leases increased by $484.2 million or 15.1% from a year ago.

·Nonperforming assets to total assets improved to 0.19%, compared to 0.33% a year ago.

·Deposits increased by $158.0 million or 4.5% from a year ago.

·Other operating income increased by $2.2 million or 24.5% compared to a year ago.

“Central Pacific earned $20.4 million, or $0.66 per diluted share, in the second quarter of 2006.  This represents increases of 14.2% and 13.8%, respectively, over the same quarter last year,” commented Clint Arnoldus, President and Chief Executive Officer.  “Other operating income showed healthy improvement, increasing by 24.5% over the second quarter of 2005.  We believe we are well-positioned to achieve our strategic goals and to continue our strong financial performance.”

Financial Highlights

Net interest income for the second quarter of 2006 was $52.2 million, up 7.5% over the $48.5 million in the second quarter of last year and virtually unchanged from the first quarter of 2006.  The year-over-year growth in net interest income was attributable to a 9.0% increase in average interest earning assets, with the increase in interest and fees on loans outpacing the increase in funding costs.  The net interest margin was 4.56% for the second quarter of 2006, which was in line with the first quarter of 2006 after excluding the impact of higher-than-normal interest recognized on the payoff of nonaccrual loans.  When compared to the second quarter of 2005, the net interest margin declined by 9 basis points as a result of the higher proportion of balances in higher-rate time deposits and long-term debt.

Reflecting the continued strength of our asset quality, provision for loan and lease losses in the second quarter of 2006 was $0.5 million, compared to $1.0 million in the second quarter of 2005 and unchanged from the first quarter of 2006.

Other operating income totaled $11.0 million for the current quarter, compared to $8.8 million in the year-ago quarter and $12.2 million in the first quarter of 2006.  The increase from the year-ago period was primarily due to an increase in service charge fee income and residential loan sale activity from Central Pacific HomeLoans, Inc. (“CPHL”).  Compared to the first quarter of 2006, gains on sales of loans declined by $1.1 million as first quarter sales activity benefited from the completion of bulk financing projects.

Other operating expense for the second quarter of 2006 was $31.5 million, compared to $28.7 million in the same quarter last year and $33.8 million in the first quarter of 2006.  The increase from the year-ago period reflects the impact of the CPHL acquisition and the expensing of stock options, offset by a decrease in core deposit premium amortization.  The reduction in expenses compared to the first quarter of 2006 reflects $2.2 million in special retirement expenses and interest accrued on various tax-related contingencies, offset by a $537,000 partial refund of an FDIC assessment recognized in the first quarter.

The Company’s efficiency ratio for the second quarter of 2006 was 47.76%, compared with 46.45% for the year-ago quarter and 50.42% for the first quarter of 2006.  “We are pleased that we can maintain our efficiency ratio at these levels while continuing to invest strategically in personnel and infrastructure to better position us for future growth,” remarked Arnoldus.

The effective tax rate was 34.38% for the current quarter, compared to 35.14% in the second quarter of 2005 and 35.65% in the first quarter of 2006.  In the second quarter of 2006, the Company recognized $0.5 million in income tax benefit in connection with the resolution of an Internal Revenue Service audit.  The Company expects its effective tax rate to approximate 36% in the coming quarters.

Asset Quality

Net loan charge-offs in the second quarter of 2006 totaled $0.7 million, compared to net loan charge-offs of $1.0 in the year-ago period and $0.4 million in the first quarter of 2006.

At June 30, 2006, nonperforming assets totaled $10.0 million, or 0.19% of total assets, compared to $16.1 million or 0.33% of total assets at June 30, 2005 and $6.1 million or 0.12% of total assets at March 31, 2006.  The increase in nonperforming assets during the second quarter of 2006 reflects the addition of two loans totaling $4.6 million.  Both loans are well secured, and no loss is currently anticipated.

The allowance for loan and lease losses as a percentage of total loans and leases was 1.43% at June 30, 2006, compared to 1.61% a year ago and 1.47% at March 31, 2006.  “Our allowance for loan and lease losses reflects our solid asset quality ratios and the continued economic strength in our markets,” commented Arnoldus.

Balance Sheet Analysis

Total assets increased to $5.3 billion at June 30, 2006, compared to $4.9 billion at June 30, 2005 and $5.2 billion at March 31, 2006.

Total loans and leases of $3.7 billion at June 30, 2006 increased by $484.2 million or 15.1% from June 30, 2005 and by $68.8 million or 1.9% from March 31, 2006.  Our mainland loan production offices contributed approximately one-third of our loan growth during the second quarter of 2006, while two-thirds of our growth came from our Hawaii lending operations.

Investment securities of $894.3 million at June 30, 2006 decreased by $154.5 million compared to a year ago and by $17.4 million compared to March 31, 2006.

2

Total deposits of $3.7 billion at June 30, 2006 increased by $158.0 million or 4.5% from June 30, 2005 and decreased by $15.0 million from March 31, 2006.    Declines in demand and time deposits during the second quarter were offset by growth in our flagship Exceptional Savings account.

Shareholders’ equity of $698.8 million at June 30, 2006, increased from $657.5 million at June 30, 2005 and $686.5 million at March 31, 2006.

Business and Earnings Outlook

Based on current economic and business conditions, management reaffirms its forecast for 2006 diluted operating earnings per share to increase 7 to 10 percent over 2005.

Conference Call Information

Central Pacific Financial Corp. will conduct a conference call today at 4:00 p.m. Eastern Time (10:00 a.m. Hawaii Time) to discuss its quarterly results.  To participate in the call, please call 1-888-802-2268 or visit the investor relations page of the Company’s website at http://investor.centralpacificbank.com.  A playback of the call will be available by dialing 1-888-203-1112 (passcode: 4820432) and on the Company’s website.

About Central Pacific Financial Corp.

Central Pacific Financial Corp. is the fourth largest financial institution in Hawaii with more than $5.0 billion in assets.  Central Pacific Bank, its primary subsidiary, operates 38 branches and more than 90 ATMs throughout Hawaii.  For additional information, please visit our website at http://www.centralpacificbank.com.

**********

Forward-Looking Statements

This document may contain forward-looking statements concerning projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure, or other financial items, concerning plans and objectives of management for future operations, concerning future economic performance, or concerning any of the assumptions underlying or relating to any of the foregoing.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and may include the words “believes”, “plans”, “intends”, “expects”, “anticipates”, “forecasts” or words of similar meaning.  While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect.  Accordingly, actual results could materially differ from projections for a variety of reasons, to include, but not limited to: the impact of local, national, and international economies and events on the company’s business and operations and on tourism, the military, and other major industries operating within the Hawaii market; the impact of legislation affecting the banking industry; the impact of competitive products, services, pricing, and other competitive forces; movements in interest rates; loan delinquency rates and changes in asset quality generally; and trading of the company’s stock.  For further information on factors that could cause actual results to materially differ from projections, please see the Company’s publicly

3

available Securities and Exchange Commission filings, including the Company’s Form 10-K for the last fiscal year.  The Company does not update any of its forward-looking statements.

#####

4

CENTRAL PACIFIC FINANCIAL CORP.  AND SUBSIDIARIES

Financial Highlights — June 30, 2006

(Unaudited)

	Three Months Ended								Six Months Ended
	June 30,						%		June 30,						%
(in thousands, except per share data)	2006			2005			Change		2006			2005			Change
INCOME STATEMENT
Net income	$	20,438		$	17,902		14.2	%	$	39,777		$	35,107		13.3	%
Operating earnings	20,438			18,217			12.2	%	39,777			36,318			9.5	%
Per share data:
Diluted:
Net income	0.66			0.58			13.8	%	1.29			1.17			10.3	%
Net income — adjusted (1)	0.66			0.59			11.9	%	1.29			1.21			6.6	%
Cash dividends	0.21			0.19			10.5	%	0.42			0.35			20.0	%
PERFORMANCE RATIOS
Return on average assets (2)	1.57		%	1.49		%			1.53		%	1.48		%
Return on average assets — adjusted (1), (2)	1.57		%	1.50		%			1.53		%	1.51		%
Return on average shareholders’ equity (2)	11.71		%	10.95		%			11.49		%	11.21		%
Return on average shareholders’ equity — adjusted (1), (2)	11.71		%	11.00		%			11.49		%	11.40		%
Net income to average tangible shareholders’ equity (2)	22.17		%	22.12		%			22.19		%	23.81		%
Operating earnings to average tangible shareholders’ equity — adjusted (1), (2)	22.17		%	22.51		%			22.19		%	24.64		%
Efficiency ratio (3)	47.76		%	46.45		%			49.10		%	50.21		%
Efficiency ratio — adjusted (1), (3)	47.76		%	45.55		%			49.10		%	48.43		%
Net interest margin (2)	4.56		%	4.65		%			4.58		%	4.62		%
Dividend payout ratio	31.34		%	32.20		%			32.06		%	29.41		%

	June 30,						%
	2006			2005			Change
BALANCE SHEET
Total assets	$	5,290,812		$	4,918,781		7.6	%
Loans	3,689,287			3,205,124			15.1	%
Loans, net	3,636,373			3,153,467			15.3	%
Deposits	3,664,160			3,506,152			4.5	%
Shareholders’ equity	698,818			657,466			6.3	%
Book value per share	22.93			21.62			6.1	%
Market value per share	38.70			35.60			8.7	%
Tangible equity ratio	7.41		%	7.19		%

	Three Months Ended						Six Months Eneded
	June 30,				%		June 30,				%
	2006		2005		Change		2006		2005		Change
SELECTED AVERAGE BALANCES
Total assets	$	5,213,105	$	4,810,755	8.4	%	$	5,199,534	$	4,754,607	9.4	%
Interest-earning assets	4,632,398		4,250,967		9.0	%	4,615,583		4,169,518		10.7	%
Loans, net of unearned interest	3,644,188		3,246,132		12.3	%	3,615,741		3,204,319		12.8	%
Other real estate	—		1		-100.0	%	—		87		-100.0	%
Deposits	3,640,556		3,409,997		6.8	%	3,622,752		3,363,133		7.7	%
Interest-bearing liabilities	3,786,334		3,458,062		9.5	%	3,763,139		3,420,168		10.0	%
Shareholders’ equity	698,122		654,118		6.7	%	692,521		626,520		10.5	%

	June 30,				%
	2006		2005		Change
NONPERFORMING ASSETS
Nonaccrual loans	$	9,999	$	16,087	-37.8	%
Other real estate	—		—		—
Total nonperforming assets	9,999		16,087		-37.8	%
Loans delinquent for 90 days or more (still accruing interest)	1,548		469		230.1	%
Restructured loans (still accruing interest)	695		707		-1.7	%
Total nonperforming assets, loans delinquent for 90 days or more (still accruing interest) and restructured loans (still accruing interest)	$	12,242	$	17,263	-29.1	%

	Three Months Ended								Six Months Ended
	June 30,						%		June 30,						%
	2006			2005			Change		2006			2005			Change
Loan charge-offs	$	1,248		$	2,031		-38.6	%	$	2,333		$	3,410		-31.6	%
Recoveries	581			1,065			-45.4	%	1,261			2,447			-48.5	%
Net loan charge-offs (recoveries)	$	667		$	966		-31.0	%	$	1,072		$	963		11.3	%
Net loan charge-offs to average loans (2)	0.07		%	0.12		%			0.06		%	0.06		%

	June 30,
	2006		2005
ASSET QUALITY RATIOS
Nonaccrual loans to total loans	0.27	%	0.50	%
Nonperforming assets to total assets	0.19	%	0.33	%
Nonperforming assets, loans delinquent for 90 days or more (still accruing interest) and restructured loans (still accruing interest) to total loans & other real estate	0.33	%	0.54	%
Allowance for loan and lease losses to total loans and leases	1.43	%	1.61	%
Allowance for loan and lease losses to nonaccrual loans	529.19	%	321.11	%

(1)Excludes nonrecurring merger-related expenses, net of tax (see Reconciliation of Non-GAAP Financial Measures)

(2)Annualized

(3)Efficiency ratio is derived by dividing other operating expense before amortization of intangible assets by net operating income (net interest income on a fully taxable equivalent basis plus other operating income before securities transactions).

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

	Three Months			Six Months
	Ended			Ended
(in thousands, except per share data)	June 30, 2005			June 30, 2005
Net income (a)	$	17,902		$	35,107
Nonrecurring merger-related expenses, net of tax	315			1,211
Net income, excluding nonrecurring merger-related expenses (b)	$	18,217		$	36,318
Basic earnings per share	$	0.59		$	1.19
Nonrecurring merger-related expenses, net of tax	0.01			0.04
Basic earnings per share, excluding nonrecurring merger-related expenses	$	0.60		$	1.23
Diluted earnings per share	$	0.58		$	1.17
Nonrecurring merger-related expenses, net of tax	0.01			0.04
Diluted earnings per share, excluding nonrecurring merger-related expenses	$	0.59		$	1.21
Return on average assets	1.49		%	1.48		%
Nonrecurring merger-related expenses, net of tax	0.03			0.05
Return on average assets, excluding nonrecurring merger-related expenses	1.52		%	1.53		%
Return on average equity	10.95		%	11.21		%
Nonrecurring merger-related expenses, net of tax	0.19			0.39
Return on average equity, excluding nonrecurring merger-related expenses	11.14		%	11.60		%
Net income to average tangible equity:
Average shareholders’ equity	$	654,118		$	626,520
Average intangible assets	(330,398		)	(331,673		)
Total tangible equity (c)	$	323,720		$	294,847
Net income to average tangible equity [ (a) annualized / (c) ]	22.12		%	23.81		%
Net income, excluding nonrecurring merger-related expenses, to average tangible equity [(b) annualized / (c) ]	22.51		%	24.64		%
Efficiency ratio:
Net interest income	$	48,510		$	94,830
Other operating income (excluding investment securities gains (losses)	8,867			16,609
Total operating revenue (d)	$	57,377		$	111,439
Other operating expense (e)	$	28,714		$	59,623
Nonrecurring merger-related expenses	(524		)	(2,016		)
Total other operating expense, excluding nonrecurring merger-related expenses (f)	$	28,190		$	57,607
Efficiency ratio [ (e) / (d) ]	50.04		%	53.50		%
Efficiency ratio, excluding nonrecurring merger-related expenses [ (f) / (d) ]	49.13		%	51.69		%
Effective tax rate:
Net income before taxes (g)	$	27,600		$	51,345
Nonrecurring merger-related expenses	524			2,016
Net income before taxes, excluding nonrecurring merger-related expenses (h)	$	28,124		$	53,361
Income taxes (i)	$	9,698		$	16,238
Tax impact of nonrecurring merger-related expenses	209			805
Income taxes, excluding tax impact of nonrecurring merger-related expenses (j)	$	9,907		$	17,043
Effective tax rate [ (i) / (g) ]	35.14		%	31.63		%
Effective tax rate, excluding tax impact of merger-related expenses [ (j) / (h) ]	35.23		%	31.94		%

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

CONSOLIDATED BALANCE SHEETS	June 30,			March 31,			June 30,
(in thousands, except per share data)	2006			2006			2005
ASSETS
Cash and due from banks	$	101,569		$	114,452		$	118,082
Interest-bearing deposits in other banks	1,177			6,737			1,312
Investment securities:
Held to maturity, at cost (fair value of $66,903 at June 30, 2006, $69,030 at March 31, 2006, and $78,652 at June 30, 2005)	68,641			70,657			78,983
Available for sale, at fair value	825,682			841,083			969,800
Total investment securities	894,323			911,740			1,048,783
Loans held for sale	24,763			34,362			22,400
Loans and leases	3,689,287			3,620,478			3,205,124
Less allowance for loan and lease losses	52,914			53,057			51,657
Net loans and leases	3,636,373			3,567,421			3,153,467
Premises and equipment	76,368			72,860			77,525
Accrued interest receivable	23,474			22,535			19,813
Investment in unconsolidated subsidiaries	11,362			11,522			12,369
Due from customers on acceptances	383			307			228
Goodwill	297,251			295,403			288,090
Core deposit premium	33,846			34,821			39,105
Mortgage servicing rights	11,873			11,918			3,470
Bank-owned life insurance	100,021			99,241			67,249
Federal Home Loan Bank stock	48,797			48,797			48,797
Other assets	29,232			17,041			18,091
Total assets	$	5,290,812		$	5,249,157		$	4,918,781
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	673,784		$	695,292		$	663,133
Interest-bearing demand	410,296			433,385			429,553
Savings and money market	1,169,874			1,103,215			1,146,256
Time	1,410,206			1,447,308			1,267,210
Total deposits	3,664,160			3,679,200			3,506,152
Short-term borrowings	104,897			52,125			7,169
Long-tem debt	742,907			753,564			675,524
Bank acceptances outstanding	383			307			228
Minority interest	13,143			13,528			12,781
Other liabilities	66,504			63,897			59,461
Total liabilities	4,591,994			4,562,621			4,261,315
Shareholders’ equity:
Preferred stock, no par value, authorized 1,000,000 shares, none issued	—			—			—
Common stock, no par value; authorized 100,000,000 shares; issued and outstanding 30,480,230 shares at June 30, 2006, 30,473,826 shares at March 31, 2006, and 30,409,823 shares at June 30, 2005	427,747			427,657			427,415
Surplus	49,723			48,790			45,848
Retained earnings	245,322			231,285			192,547
Deferred stock awards	—			—			(299		)
Accumulated other comprehensive loss	(23,974		)	(21,196		)	(8,045		)
Total shareholders’ equity	698,818			686,536			657,466
Total liabilities and shareholders’ equity	$	5,290,812		$	5,249,157		$	4,918,781

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Quarter to Date								Six Months Ended
	June 30,			March 31,		June 30,			June 30,
(In thousands, except per share data)	2006			2006		2005			2006			2005
Interest income:
Interest and fees on loans and leases	$	67,606		$	64,553	$	54,138		$	132,159		$	104,972
Interest and dividends on investment securities:
Taxable interest	8,947			8,563		7,948			17,510			15,397
Tax-exempt interest	1,277			1,318		1,630			2,595			2,635
Dividends	8			103		116			111			135
Interest on deposits in other banks	54			173		58			227			205
Interest on federal funds sold and securities purchased under agreements to resell	2			52		21			54			79
Dividends on Federal Home Loan Bank stock	—			—		—			—			272
Total interest income	77,894			74,762		63,911			152,656			123,695
Interest expense:
Interest on deposits	16,464			13,805		9,005			30,269			16,522
Interest on short-term borrowings	583			231		313			814			840
Interest on long-term debt	8,680			8,534		6,083			17,214			11,503
Total interest expense	25,727			22,570		15,401			48,297			28,865
Net interest income	52,167			52,192		48,510			104,359			94,830
Provision for loan and lease losses	525			525		1,000			1,050			1,917
Net interest income after provision for loan and lease losses	51,642			51,667		47,510			103,309			92,913
Other operating income:
Income from fiduciary activities	740			677		581			1,417			1,114
Service charges on deposit accounts	3,457			3,536		2,456			6,993			4,898
Other service charges and fees	3,153			3,051		3,028			6,204			5,804
Equity in earnings of unconsolidated subsidiaries	147			184		187			331			290
Fees on foreign exchange	212			182		188			394			406
Investment securities gains (losses)	(19		)	—		(63		)	(19		)	1,446
Income from bank-owned life insurance	785			924		515			1,709			1,148
Gains on sales of loans	1,451			2,589		991			4,040			1,422
Other	1,034			1,021		921			2,055			1,527
Total other operating income	10,960			12,164		8,804			23,124			18,055
Other operating expense:
Salaries and employee benefits	17,615			19,062		14,243			36,677			30,452
Net occupancy	2,301			2,274		2,289			4,575			5,044
Equipment	1,280			1,173		1,328			2,453			2,525
Amortization of core deposit premium	974			974		1,655			1,948			2,955
Communication expense	1,208			1,168		1,069			2,376			2,153
Legal and professional services	2,323			1,866		1,724			4,189			4,360
Computer software expense	647			593		840			1,240			1,668
Advertising expense	528			746		493			1,274			1,258
Other	4,582			5,923		5,073			10,505			9,208
Total other operating expense	31,458			33,779		28,714			65,237			59,623
Income before income taxes	31,144			30,052		27,600			61,196			51,345
Income taxes	10,706			10,713		9,698			21,419			16,238
Net income	$	20,438		$	19,339	$	17,902		$	39,777		$	35,107
Per share data:
Basic earnings per share	$	0.67		$	0.64	$	0.59		$	1.31		$	1.19
Diluted earnings per share	0.66			0.63		0.58			1.29			1.17
Cash dividends declared	0.21			0.21		0.19			0.42			0.35
Basic weighted average shares outstanding (000’s)	30,466			30,441		30,364			30,453			29,501
Diluted weighted average shares outstanding (000’s)	30,783			30,658		30,843			30,768			30,025

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)

	Three Months Ended					Three Months Ended					Six Months Ended					Six Months Ended
	June 30, 2006					June 30, 2005					June 30, 2006					June 30, 2005
	Average		Average			Average		Average			Average		Average			Average		Average
(in thousands)	Balance		Yield/Rate	Interest		Balance		Yield/Rate	Interest		Balance		Yield/Rate	Interest		Balance		Yield/Rate	Interest
Assets:
Interest earning assets:
Interest-bearing deposits in other banks	$	5,419	3.99%	$	54	$	8,989	2.58%	$	58	$	11,151	4.07%	$	227	$	17,998	2.28%	$	205
Federal funds sold & securities purchased under agreements to resell	121		3.31%	2		2,784		3.02%	21		2,411		4.48%	54		6,545		2.41%	79
Investment securities (1) (2)	933,873		4.68%	10,920		944,265		4.48%	10,572		937,483		4.61%	21,613		891,956		4.39%	19,586
Loans, net of unearned income (3)	3,644,188		7.42%	67,606		3,246,132		6.67%	54,138		3,615,741		7.31%	132,159		3,204,319		6.55%	104,972
Federal Home Loan Bank stock	48,797		—	—		48,797		—	—		48,797		—	—		48,700		1.12%	272
Total interest earning assets	4,632,398		6.79%	78,582		4,250,967		6.10%	64,789		4,615,583		6.68%	154,053		4,169,518		6.00%	125,114
Nonearning assets	580,707					559,788					583,951					585,089
Total assets	$	5,213,105				$	4,810,755				$	5,199,534				$	4,754,607
Liabilities & Shareholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	423,497	0.14%	$	143	$	427,918	0.16%	$	173	$	427,157	0.14%	$	292	$	428,476	0.20%	$	422
Savings and money market deposits	1,141,923		1.41%	4,018		1,124,634		0.62%	1,748		1,108,706		1.21%	6,698		1,127,036		0.56%	3,157
Time deposits under $100,000	571,233		2.77%	3,951		557,695		1.89%	2,631		581,613		2.60%	7,564		550,978		1.88%	5,170
Time deposits $100,000 and over	857,086		3.90%	8,352		678,545		2.63%	4,453		848,228		3.71%	15,715		644,142		2.41%	7,773
Short-term borrowings	45,758		5.10%	583		42,600		2.94%	313		33,746		4.82%	814		64,111		2.62%	840
Long-term debt	746,837		4.65%	8,680		626,670		3.88%	6,083		763,689		4.51%	17,214		605,425		3.80%	11,503
Total interest-bearing liabilities	3,786,334		2.72%	25,727		3,458,062		1.78%	15,401		3,763,139		2.57%	48,297		3,420,168		1.69%	28,865
Noninterest-bearing deposits	646,817					621,206					657,047					612,502
Other liabilities	81,832					77,369					86,827					95,417
Shareholders’ equity	698,122					654,118					692,521					626,520
Total liabilities & shareholders’ equity	$	5,213,105				$	4,810,755				$	5,199,534				$	4,754,607
Net interest income				$	52,855				$	49,388				$	105,756				$	96,249
Net interest margin			4.56%					4.65%					4.58%					4.62%

(1)At amortized cost.

(2)Includes taxable equivalent basis adjustment based upon a statutory rate of 35%.

(3)Includes nonaccrual loans.