Exhibit 99.1
FOR IMMEDIATE RELEASE
ATTENTION: FINANCIAL AND BUSINESS EDITORS
| Contact: | Martin A. Dietrich, CEO |
Michael J. Chewens, CFO
NBT Bancorp Inc.
52 South Broad Street
Norwich, NY 13815
607-337-6119
NBT BANCORP INC. ANNOUNCES FIRST-QUARTER RESULTS AND DECLARES QUARTERLY CASH DIVIDEND
NORWICH, NY (April 24, 2006) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) today reported net income for the three months ended March 31, 2006, of $13.6 million, up 6% or $0.8 million from net income of $12.8 million reported for the same period in 2005. Net income per diluted share for the three months ended March 31, 2006, was $0.40, an increase of $0.01 from the $0.39 per diluted share earned in the same period in 2005. Return on average assets and return on average equity were 1.18% and 15.11%, respectively, for the three months ended March 31, 2006, compared with 1.23% and 15.74%, respectively, for the same period in 2005. The comparability of financial information is affected by the acquisition of CNB Bancorp, Inc. (“CNB”). Operating results include the operations of CNB from the date of acquisition, which was February 10, 2006.
The results for the three months ended March 31, 2006, were driven primarily by increases in net interest income of $1.3 million and noninterest income of $0.5 million as well as a $0.5 million decrease in income tax expense partially offset by an increase in noninterest expense of $1.6 million compared with the same period in 2005.
Results for the three months ended March 31, 2006, include $0.7 million in pre-tax share-based payment expense related to stock options resulting from the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004) (FAS 123R), “Share-Based Payment”, which requires companies to measure and recognize compensation expense for all share-based payments starting in 2006. The adoption of FAS 123R lowered diluted earnings per share by $0.01 for the three months ended March 31, 2006.
In commenting on the results, NBT President and CEO Martin A. Dietrich stated, “I am very pleased with the quality of our earnings performance in the first quarter. Our operating success was driven by solid noninterest income and loan growth. In addition, we were able to further improve the credit quality of our loan portfolio. We also completed the acquisition of CNB in the first quarter and are happy to embark on our new partnership with its customers, employees, directors and stockholders. All of these successes helped drive the financial results reflected in our earnings growth.”
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans totaled $13.3 million at March 31, 2006, and represented 0.41% of total loans and leases, compared with $14.3 million and 0.47% at December 31, 2005, and $17.4 million and 0.60% at March 31, 2005. Annualized net charge-offs to average loans and leases for the three months ended March 31, 2006, were 0.23%, compared with the 0.19% annualized ratio for the three months ended March 31, 2005, and the year-to-date December 31, 2005, rate of 0.23%. The allowance for loan and lease losses as a percentage of total loans and leases was 1.53% at March 31, 2006, compared with 1.57% at December 31, 2005, and March 31, 2005. The ratio of the allowance for loan and lease losses to nonperforming loans was 373.56% at March 31, 2006, compared with 331.92% at December 31, 2005 and 261.28% at March 31, 2005. For the three months ended March 31, 2006, the provision for loan and lease losses totaled $1.7 million compared with the $1.8 million provided in the same period in 2005.
Net Interest Income and Net Interest Margin
Net interest income for the three months ended March 31, 2006, increased 3% to $40.1 million from $38.8 million for the same period in 2005. The increase in net interest income was driven primarily by an increase in average earning assets of $389.5 million or 10%. The increase in average earning assets resulted primarily from a $270.3 million increase in average loans and leases, including $103.2 million of acquired loans from CNB on February 10, 2006. Organic average loan and lease growth was 6% for the three months ended March 31, 2006, compared with the same period in 2005. Average investment securities (excluding unrealized gains or losses) increased $114.1 million for the period, principally from the CNB transaction. The Company’s net interest margin decreased 23 basis points (“bp”) for the three months ended March 31, 2006 to 3.86% from 4.09% for the same period in 2005. The Company’s net interest margin of 3.86%, declined 11 bp during the three months ended March 31, 2006, compared with the net interest margin of 3.97% for the three months ended December 31, 2005. The decline in the net interest margin is due largely to the effect from our borrowings, money market accounts and time deposits repricing in the higher interest rate environment. Meanwhile, earning assets, particularly those tied to a fixed rate, have not realized the benefit of the higher interest rate environment, since rates for earning assets with terms three years or longer have remained relatively flat during this period. The Company anticipates that margin pressure will persist into the next several quarters given the flat yield curve.
Noninterest Income
Noninterest income for the three months ended March 31, 2006, totaled $11.2 million, up $0.5 million from the $10.7 million reported in the same period of 2005. Included in noninterest income for the three months ended March 31, 2006 were $0.9 million in net losses from investment securities sales and a $0.5 million gain from a branch sale in March 2006. Excluding the effect of these transactions for the three months ended March 31, 2006, noninterest income increased $1.0 million or 9% compared with the same period in 2005. Retirement plan administration fees for the three months ended March 31, 2006, increased $0.4 million compared with the same period in 2005. This increase resulted from a full quarter of revenue for the three months ended March 31, 2006 compared with a partial quarter of revenue in the same period in 2005 when we acquired EPIC Advisors, Inc. in January 2005. Excluding the $0.5 million gain on sale of a branch mentioned above, other noninterest income increased $0.4 million compared with the same period in 2005, principally from increases in retail and commercial banking fees. Fees from service charges on deposit accounts and ATM and debit cards collectively increased $0.5 million from solid growth in demand deposit accounts. Broker/dealer and insurance revenue for the three months ended March 31, 2006, decreased $0.4 million, primarily from the sale of the Company’s broker/dealer subsidiary M. Griffith Inc., in March 2005.
Noninterest Expense and Income Tax Expense
Total noninterest expense for the three months ended March 31, 2006, increased $1.6 million compared with the same period for 2005. Salaries and employee benefits for the three months ended March 31, 2006, increased $0.3 million over the same period in 2005, primarily from the previously mentioned stock option expense of $0.7 million that reflects the adoption of FAS 123R. Other operating expense increased $0.8 million for the three months ended March 31, 2006, compared with the same period in 2005, primarily from merger related expenses. Income tax expense for the quarter ended March 31, 2006, was $5.6 million, down $0.5 million from the $6.1 million recorded during the same period in 2005. The effective rate for the quarter ended March 31, 2006, was 29.0%, down from 32.1% for the same period in 2005. The decrease in tax expense and the effective tax rate for the quarter ended March 31, 2006, resulted primarily from a settlement for a tax refund claim of $0.5 million.
Balance Sheet
Total assets were $4.9 billion at March 31, 2006, up $630.4 million from $4.3 billion at March 31, 2005. The increase in total assets resulted primarily from the CNB transaction and organic loan growth. Loans and leases were $3.2 billion at March 31, 2006, up 12% from the $2.9 billion at March 31, 2005. Loan and lease growth was driven primarily by the CNB transaction, which accounted for $197.6 million of the increase; the remaining increase was driven by organic growth from commercial and consumer loans. Goodwill and intangible assets increased $64.5 million at March 31, 2006, compared with March 31, 2005, as a result of the CNB transaction. Total deposits increased $451.1 million or 14%, totaling $3.6 billion at March 31, 2006, compared with $3.2 billion at March 31, 2005. Deposits assumed from the CNB transaction totaled $336.5 million; the remaining growth for deposits was driven mainly by increases in demand deposit and time accounts. Trust preferred debentures increased $56.7 million, totaling $75.4 million at March 31, 2006, compared with $18.7 million at March 31, 2005. The increase in trust preferred debentures resulted mainly from funding the cash portion of the CNB transaction. Stockholders’ equity was $385.8 million, representing a total-equity-to-total-assets ratio of 7.90% at March 31, 2006, compared with $319.2 million or a total-equity-to-total-assets ratio of 7.50% at March 31, 2005.
CNB Acquisition
On February 10, 2006, the Company completed its previously announced acquisition of CNB. With the completion of the acquisition, City National Bank and Trust Company merged into NBT Bank, N.A., adding nine full-service community banking offices to the NBT Bank division branch network. On an aggregate basis, CNB stockholders received approximately $39 million in cash and 2,059,000 shares of NBT common stock. The aggregate transaction value was approximately $89.0 million.
Stock Repurchase Program
On January 23, 2006, the NBT Board of Directors authorized a new repurchase program whereby NBT intends to repurchase up to an additional 1,000,000 shares (approximately 3%) of its outstanding common stock, as market conditions warrant in open market and privately negotiated transactions. When this repurchase was authorized, there were 503,151 shares remaining under a previous authorization that was combined with the new authorization, increasing the total shares available for repurchase to 1,503,151. Under the authorized programs for the period, the Company purchased 178,404 shares of its common stock during the three months ended March 31, 2006, for a total of $4.1 million at an average price of $22.73 per share.
Dividend Declared
The NBT Board of Directors declared a second quarter 2006 cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on June 15, 2006, to shareholders of record as of June 1, 2006.
Corporate Overview
NBT is a financial holding company headquartered in Norwich, NY, with total assets of $4.9 billion at March 31, 2006. The Company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions and through two financial services companies. NBT Bank, N.A. has 121 locations, including 83 NBT Bank offices in upstate New York and 38 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. More information about NBT and its divisions can be found on the Internet at www.nbtbancorp.com, www.nbtbank.com, www.pennstarbank.com, www.epic1st.com and www.hathawayagency.com.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT’s control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; (7) NBT may fail to realize projected cost savings, revenue enhancements and the accretive effect of the CNB acquisition on our earnings; and (8) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events.
FINANCIAL TABLES APPEAR ON FOLLOWING PAGES (6-10).
NBT Bancorp Inc.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| | | 2006 | | 2005 | | Net Change | | Percent Change | |
| | (dollars in thousands, except per share data) | | | | |
| | | | | | | | | | |
Three Months Ended March 31, | | | | | | | | | |
| Net Income | | | $13,588 | | | $12,789 | | | $799 | | | 6% | |
| Diluted Earnings Per Share | | | $0.40 | | | $0.39 | | | $0.01 | | | 3% | |
| Weighted Average Diluted | | | | | | | | | | | | | |
| Common Shares Outstanding | | | 33,746,423 | | | 32,977,381 | | | 769,042 | | | 2% | |
| Return on Average Assets | | | 1.18% | | | 1.23% | | | -0.05% | | | -4% | |
| Return on Average Equity | | | 15.11% | | | 15.74% | | | -0.63% | | | -4% | |
| Net Interest Margin | | | 3.86% | | | 4.09% | | | -0.23% | | | -6% | |
| | | | | | | | | | | | | | |
Asset Quality | | | March 31, | | | December 31, | | | March 31, | | | | |
| | | | 2006 | | | 2005 | | | 2005 | | | | |
| Nonaccrual Loans | | | $12,616 | | | $13,419 | | | $16,612 | | | | |
| 90 Days Past Due and Still Accruing | | | $720 | | | $878 | | | $760 | | | | |
| Total Nonperforming Loans | | | $13,336 | | | $14,297 | | | $17,372 | | | | |
| Other Real Estate Owned (OREO) | | | $279 | | | $265 | | | $438 | | | | |
| Total Nonperforming Assets | | | $13,615 | | | $14,562 | | | $17,810 | | | | |
| Allowance for Loan and Lease Losses | | | $49,818 | | | $47,455 | | | $45,389 | | | | |
| Year-to-Date (YTD) Net Charge-Offs | | | $1,775 | | | $6,941 | | | $1,339 | | | | |
| Allowance to Loans and Leases | | | 1.53% | | | 1.57% | | | 1.57% | | | | |
| Total Nonperforming Loans to Loans and Leases | | | 0.41% | | | 0.47% | | | 0.60% | | | | |
| Total Nonperforming Assets to Assets | | | 0.28% | | | 0.33% | | | 0.42% | | | | |
| Allowance to Nonperforming Loans | | | 373.56% | | | 331.92% | | | 261.28% | | | | |
| Net Charge-Offs to | | | | | | | | | | | | | |
| YTD Average Loans and Leases | | | 0.23% | | | 0.23% | | | 0.19% | | | | |
| | | | | | | | | | | | | | |
Capital | | | | | | | | | | | | | |
| Equity to Assets | | | 7.90% | | | 7.54% | | | 7.50% | | | | |
| Book Value Per Share | | | $11.22 | | | $10.34 | | | $9.85 | | | | |
| Tangible Book Value Per Share | | | $7.84 | | | $8.75 | | | $8.25 | | | | |
| Tier 1 Leverage Ratio | | | 7.77% | | | 7.16% | | | 6.89% | | | | |
| Tier 1 Capital Ratio | | | 10.30% | | | 9.80% | | | 9.41% | | | | |
| Total Risk-Based Capital Ratio | | | 11.56% | | | 11.05% | | | 10.67% | | | | |
Quarterly Common Stock Price | | 2006 | | 2005 | | 2004 | |
| Quarter End | | High | | Low | | High | | Low | | High | | Low | |
| March 31 | | | $23.90 | | | $21.02 | | | $25.66 | | | $21.48 | | | $23.00 | | | $21.21 | |
| June 30 | | | | | | | | | 24.15 | | | 20.10 | | | 23.18 | | | 19.92 | |
| September 30 | | | | | | | | | 25.50 | | | 22.79 | | | 24.34 | | | 21.02 | |
| December 31 | | | | | | | | | 23.79 | | | 20.75 | | | 26.84 | | | 21.94 | |
NBT Bancorp Inc.
SELECTED FINANCIAL HIGHLIGHTS
(unaudited)
| | | 2006 | | 2005 | | Net Change | | Percent Change | |
| | (dollars in thousands, except per share data) | | | | |
Balance Sheet as of March 31, | | | | | | | | | |
| Loans | | $ | 3,247,841 | | $ | 2,898,187 | | $ | 349,654 | | | 12 | % |
| Earning Assets | | $ | 4,529,770 | | $ | 3,984,545 | | $ | 545,225 | | | 14 | % |
| Total Assets | | $ | 4,885,851 | | $ | 4,255,439 | | $ | 630,412 | | | 15 | % |
| Deposits | | $ | 3,620,061 | | $ | 3,168,927 | | $ | 451,134 | | | 14 | % |
| Stockholders’ Equity | | $ | 385,754 | | $ | 319,239 | | $ | 66,515 | | | 21 | % |
| | | | | | | | | | | | | | |
Average Balances | | | | | | | | | | | | | |
Quarter Ended March 31, | | | | | | | | | | | | | |
| Loans | | $ | 3,147,115 | | $ | 2,876,853 | | $ | 270,262 | | | 9 | % |
| Securities Available For Sale | | | | | | | | | | | | | |
| (excluding unrealized gains or losses) | | $ | 1,054,370 | | $ | 952,848 | | $ | 101,522 | | | 11 | % |
| Securities Held To Maturity | | $ | 97,347 | | $ | 84,783 | | $ | 12,564 | | | 15 | % |
| Regulatory Equity Investment | | $ | 40,549 | | $ | 36,535 | | $ | 4,014 | | | 11 | % |
| Short-Term Interest Bearing Accounts | | $ | 7,742 | | $ | 6,578 | | $ | 1,164 | | | 18 | % |
| Total Earning Assets | | $ | 4,347,123 | | $ | 3,957,597 | | $ | 389,526 | | | 10 | % |
| Total Assets | | $ | 4,666,163 | | $ | 4,237,627 | | $ | 428,536 | | | 10 | % |
| Interest Bearing Deposits | | $ | 2,809,696 | | $ | 2,604,441 | | $ | 205,255 | | | 8 | % |
| Non-Interest Bearing Deposits | | $ | 591,087 | | $ | 505,457 | | $ | 85,630 | | | 17 | % |
| Short-Term Borrowings | | $ | 371,632 | | $ | 329,726 | | $ | 41,906 | | | 13 | % |
| Long-Term Borrowings | | $ | 475,755 | | $ | 413,233 | | $ | 62,522 | | | 15 | % |
| Total Interest Bearing Liabilities | | $ | 3,657,083 | | $ | 3,347,400 | | $ | 309,683 | | | 9 | % |
| Stockholders’ Equity | | $ | 365,015 | | $ | 329,947 | | $ | 35,068 | | | 11 | % |
NBT Bancorp Inc. and Subsidiaries | | March 31, | | December 31, | | March 31, | |
Consolidated Balance Sheets (unaudited) | | 2006 | | 2005 | | 2005 | |
| (in thousands) | | | | | | | |
| | | | | | | | |
ASSETS | | | | | | | |
| Cash and due from banks | | $ | 123,593 | | $ | 134,501 | | $ | 106,520 | |
| Short term interest bearing accounts | | | 9,675 | | | 7,987 | | | 5,783 | |
| Securities available for sale, at fair value | | | 1,112,118 | | | 954,474 | | | 950,555 | |
| Securities held to maturity (fair value of $102,338, $93,701 and | | | 102,754 | | | 93,709 | | | 87,063 | |
| $87,407 at March 31, 2006, December 31, 2005 and | | | | | | | | | | |
| March 31, 2005, respectively) | | | | | | | | | | |
| Federal Reserve and Federal Home Loan Bank stock | | | 37,962 | | | 40,259 | | | 36,942 | |
| Loans and leases | | | 3,247,841 | | | 3,022,657 | | | 2,898,187 | |
| Less allowance for loan and lease losses | | | 49,818 | | | 47,455 | | | 45,389 | |
| Net loans and leases | | | 3,198,023 | | | 2,975,202 | | | 2,852,798 | |
| Premises and equipment, net | | | 67,889 | | | 63,693 | | | 63,806 | |
| Goodwill | | | 102,692 | | | 47,544 | | | 47,544 | |
| Intangible assets, net | | | 13,632 | | | 3,808 | | | 4,234 | |
| Bank owned life insurance | | | 40,535 | | | 33,648 | | | 32,634 | |
| Other assets | | | 76,978 | | | 71,948 | | | 67,560 | |
TOTAL ASSETS | | $ | 4,885,851 | | $ | 4,426,773 | | $ | 4,255,439 | |
| | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | |
| Deposits: | | | | | | | | | | |
| Demand (noninterest bearing) | | $ | 618,531 | | $ | 593,422 | | $ | 509,077 | |
| Savings, NOW, and money market | | | 1,546,840 | | | 1,325,166 | | | 1,467,265 | |
| Time | | | 1,454,690 | | | 1,241,608 | | | 1,192,585 | |
| Total deposits | | | 3,620,061 | | | 3,160,196 | | | 3,168,927 | |
| Short-term borrowings | | | 329,702 | | | 444,977 | | | 307,514 | |
| Long-term debt | | | 424,865 | | | 414,330 | | | 394,500 | |
| Trust preferred debentures | | | 75,422 | | | 23,875 | | | 18,720 | |
| Other liabilities | | | 50,047 | | | 49,452 | | | 46,539 | |
| Total liabilities | | | 4,500,097 | | | 4,092,830 | | | 3,936,200 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total stockholders' equity | | | 385,754 | | | 333,943 | | | 319,239 | |
| | | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 4,885,851 | | $ | 4,426,773 | | $ | 4,255,439 | |
NBT Bancorp Inc. and Subsidiaries | | Three months ended March 31, | |
Consolidated Statements of Income (unaudited) | | 2006 | | 2005 | |
| (in thousands, except per share data) | | | | | |
Interest, fee and dividend income: | | | | | |
| Loans and leases | | $ | 52,833 | | $ | 43,944 | |
| Securities available for sale | | | 11,877 | | | 10,247 | |
| Securities held to maturity | | | 985 | | | 803 | |
| Other | | | 611 | | | 467 | |
| Total interest, fee and dividend income | | | 66,306 | | | 55,461 | |
Interest expense: | | | | | | | |
| Deposits | | | 17,225 | | | 10,720 | |
| Short-term borrowings | | | 3,937 | | | 1,861 | |
| Long-term debt | | | 4,142 | | | 3,808 | |
| Trust preferred debentures | | | 883 | | | 258 | |
| Total interest expense | | | 26,187 | | | 16,647 | |
| Net interest income | | | 40,119 | | | 38,814 | |
| Provision for loan and lease losses | | | 1,728 | | | 1,796 | |
| Net interest income after provision for loan and lease losses | | | 38,391 | | | 37,018 | |
Noninterest income: | | | | | | | |
| Trust | | | 1,358 | | | 1,252 | |
| Service charges on deposit accounts | | | 4,219 | | | 3,929 | |
| ATM and debit card fees | | | 1,645 | | | 1,400 | |
| Broker/dealer and insurance revenue | | | 908 | | | 1,352 | |
| Net securities losses | | | (934 | ) | | (4 | ) |
| Bank owned life insurance income | | | 381 | | | 333 | |
| Retirement plan administration fees | | | 1,231 | | | 863 | |
| Other | | | 2,416 | | | 1,586 | |
| Total noninterest income | | | 11,224 | | | 10,711 | |
Noninterest expense: | | | | | | | |
| Salaries and employee benefits | | | 15,748 | | | 15,451 | |
| Office supplies and postage | | | 1,181 | | | 1,150 | |
| Occupancy | | | 2,988 | | | 2,788 | |
| Equipment | | | 2,156 | | | 2,096 | |
| Professional fees and outside services | | | 1,832 | | | 1,675 | |
| Data processing and communications | | | 2,702 | | | 2,658 | |
| Amortization of intangible assets | | | 323 | | | 118 | |
| Loan collection and other real estate owned | | | 211 | | | 401 | |
| Other operating | | | 3,331 | | | 2,544 | |
| Total noninterest expense | | | 30,472 | | | 28,881 | |
| Income before income taxes | | | 19,143 | | | 18,848 | |
| Income taxes | | | 5,555 | | | 6,059 | |
Net income | | $ | 13,588 | | $ | 12,789 | |
| Earnings Per Share: | | | | | | | |
| Basic | | $ | 0.41 | | $ | 0.39 | |
| Diluted | | $ | 0.40 | | $ | 0.39 | |
NBT Bancorp Inc. and Subsidiaries Quarterly Consolidated Statements of Income (unaudited) | | 1Q 2006 | | 4Q 2005 | | 3Q 2005 | | 2Q 2005 | | 1Q 2005 | |
| (in thousands, except per share data) | | | | | | | | | | | |
Interest, fee and dividend income: | | | | | | | | | | | |
| Loans | | $ | 52,833 | | $ | 50,726 | | $ | 48,784 | | $ | 46,260 | | $ | 43,944 | |
| Securities available for sale | | | 11,877 | | | 10,544 | | | 10,103 | | | 10,226 | | | 10,247 | |
| Securities held to maturity | | | 985 | | | 913 | | | 860 | | | 831 | | | 803 | |
| Other | | | 611 | | | 575 | | | 535 | | | 549 | | | 467 | |
| Total interest, fee and dividend income | | | 66,306 | | | 62,758 | | | 60,282 | | | 57,866 | | | 55,461 | |
Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 17,225 | | | 14,352 | | | 12,842 | | | 12,018 | | | 10,720 | |
| Short-term borrowings | | | 3,937 | | | 3,911 | | | 3,005 | | | 2,207 | | | 1,861 | |
| Long-term debt | | | 4,142 | | | 4,098 | | | 4,176 | | | 4,032 | | | 3,808 | |
| Trust preferred debentures | | | 883 | | | 375 | | | 308 | | | 285 | | | 258 | |
| Total interest expense | | | 26,187 | | | 22,736 | | | 20,331 | | | 18,542 | | | 16,647 | |
| Net interest income | | | 40,119 | | | 40,022 | | | 39,951 | | | 39,324 | | | 38,814 | |
| Provision for loan and lease losses | | | 1,728 | | | 2,596 | | | 2,752 | | | 2,320 | | | 1,796 | |
| Net interest income after provision for loan and lease losses | | | 38,391 | | | 37,426 | | | 37,199 | | | 37,004 | | | 37,018 | |
Noninterest income: | | | | | | | | | | | | | | | | |
| Trust | | | 1,358 | | | 1,234 | | | 1,292 | | | 1,251 | | | 1,252 | |
| Service charges on deposit accounts | | | 4,219 | | | 4,340 | | | 4,314 | | | 4,311 | | | 3,929 | |
| ATM and debit card fees | | | 1,645 | | | 1,587 | | | 1,631 | | | 1,544 | | | 1,400 | |
| Broker/dealer and insurance fees | | | 908 | | | 527 | | | 571 | | | 736 | | | 1,352 | |
| Net securities (losses) gains | | | (934 | ) | | (546 | ) | | (737 | ) | | 51 | | | (4 | ) |
| Bank owned life insurance income | | | 381 | | | 342 | | | 339 | | | 333 | | | 333 | |
| Retirement plan administration fees | | | 1,231 | | | 1,212 | | | 1,195 | | | 1,156 | | | 863 | |
| Other | | | 2,416 | | | 1,736 | | | 1,746 | | | 1,673 | | | 1,586 | |
| Total noninterest income | | | 11,224 | | | 10,432 | | | 10,351 | | | 11,055 | | | 10,711 | |
Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 15,748 | | | 13,863 | | | 15,438 | | | 15,253 | | | 15,451 | |
| Office supplies and postage | | | 1,181 | | | 1,222 | | | 1,135 | | | 1,121 | | | 1,150 | |
| Occupancy | | | 2,988 | | | 2,689 | | | 2,425 | | | 2,550 | | | 2,788 | |
| Equipment | | | 2,156 | | | 2,120 | | | 1,971 | | | 1,931 | | | 2,096 | |
| Professional fees and outside services | | | 1,832 | | | 1,584 | | | 1,447 | | | 1,381 | | | 1,675 | |
| Data processing and communications | | | 2,702 | | | 2,548 | | | 2,613 | | | 2,530 | | | 2,658 | |
| Amortization of intangible assets | | | 323 | | | 142 | | | 142 | | | 142 | | | 118 | |
| Loan collection and other real estate owned | | | 211 | | | 278 | | | 115 | | | 208 | | | 401 | |
| Other operating | | | 3,331 | | | 4,703 | | | 3,293 | | | 3,580 | | | 2,544 | |
| Total noninterest expense | | | 30,472 | | | 29,149 | | | 28,579 | | | 28,696 | | | 28,881 | |
| Income before income taxes | | | 19,143 | | | 18,709 | | | 18,971 | | | 19,363 | | | 18,848 | |
| Income taxes | | | 5,555 | | | 5,714 | | | 5,445 | | | 6,235 | | | 6,059 | |
Net income | | $ | 13,588 | | $ | 12,995 | | $ | 13,526 | | $ | 13,128 | | $ | 12,789 | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.41 | | $ | 0.40 | | $ | 0.42 | | $ | 0.41 | | $ | 0.39 | |
| Diluted | | $ | 0.40 | | $ | 0.40 | | $ | 0.41 | | $ | 0.40 | | $ | 0.39 | |
