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 A 5.3% INCREASE IN QUARTERLY CASH DIVIDEND
NORWICH, NY (April 23, 2007) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the three months ended March 31, 2007, was $14.1 million, up 4.0% or $0.5 million from net income of $13.6 million reported for the same period in 2006. Net income per diluted share for the three months ended March 31, 2007, was $0.41 per share, compared with $0.40 per share for the same period in 2006. Return on average assets and return on average equity were 1.13% and 14.06%, respectively, for the three months ended March 31, 2007, compared with 1.18% and 15.11%, respectively, for the same period in 2006. The increase in net income for the three months ended March 31, 2007, was primarily the result of a $0.5 million increase in net interest income and a $1.5 million increase in noninterest income. The aforementioned increases in income were partially offset by a $0.4 million increase in noninterest expense, a $0.4 million increase in provision for loan and lease losses and a $0.7 million increase in income tax expense.
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.
NBT President and CEO Martin A. Dietrich stated, “Despite the challenges we face in the current interest rate environment, I am pleased with our earnings performance for the first quarter. Although our net interest margin continues to compress, we have been able to successfully mitigate this compression through growth in our earning assets. In addition, we have been able to reduce our reliance on interest income by continuing to post strong noninterest income results. This, coupled with the dedication, focus and perseverance of our employees, has enabled us to deliver strong earnings for the quarter. While 2007 promises to be a challenging year for the financial services industry, I am encouraged by our results for the first quarter.”
Loan and Lease Quality and Provision for Loan and Lease Losses
Nonperforming loans at March 31, 2007, were $17.4 million or 0.51% of total loans and leases compared with $13.3 million or 0.41% of total loans and leases at March 31, 2006. This increase was mainly attributable to increases in nonperforming small business and agricultural loans, primarily due to regional flooding as well as falling milk prices. Net charge-offs for the three month period ended March 31, 2007, were $2.1 million, up $0.4 million from the three month period ended March 31, 2006. Net charge-offs to average loans and leases for the three months ended March 31, 2007, were 0.25%, compared with the 0.23% ratio for the three months ended March 31, 2006. For the three months ended March 31, 2007, the provision for loan and lease losses totaled $2.1 million, compared with $1.7 million for the same period in 2006. The Company’s allowance for loan and lease losses was 1.49% of loans and leases at March 31, 2007, compared with 1.53% at March 31, 2006. The ratio of the allowance for loan and lease losses to nonperforming loans was 291.16% at March 31, 2007, compared with 373.56% at March 31, 2006.
Net Interest Income
Net interest income was up 1.3% to $40.6 million for the three months ended March 31, 2007, compared with $40.1 million for the same period a year ago. Despite a decrease in the Company’s fully taxable equivalent (FTE) net interest margin, from 3.86% for the three months ended March 31, 2006, to 3.63% for the same period in 2007, the Company experienced an increase in net interest income that was attributable to an 8.3% growth in average earning assets. The growth in average earning assets was in large part due to organic loan growth, particularly consumer loans, as well as the acquisition of CNB in February 2006. The decline in the net interest margin is due largely to the effect from our borrowings, money market accounts and time deposits repricing in a higher interest rate environment. Earning assets, particularly those tied to a fixed rate, have not realized the benefit of the higher interest rate environment, since yields on earning assets with terms of 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 to inverted yield curve. If the yield curve remains flat or inverted, we expect net interest income to remain relatively flat through 2007.
Noninterest Income
Noninterest income for the three months ended March 31, 2007, was $12.7 million, up $1.5 million or 13.1% from $11.2 million for the same period in 2006. Fees from service charges on deposit accounts and ATM and debit cards collectively increased $0.5 million from growth in our debit card base as well as growth in our demand deposit accounts. Retirement plan administration fees for the three months ended March 31, 2007, increased $0.4 million, compared with the same period in 2006, as a result of our growing client base. Broker/dealer and insurance revenue for the three months ended March 31, 2007, increased $0.2 million in large part due to the growth in brokerage income from retail financial services as well as the addition of Hathaway Insurance Agency as part of the acquisition of CNB. Bank-owned life insurance income for the three months ended March 31, 2007, increased $0.1 million, compared with the same period in 2006. This increase was due in large part to the acquisition of CNB. Trust administration income increased $0.1 million for the three months ended March 31, 2007, compared with the same period in 2006. This increase stems from the increased market value of accounts, an increase in customer accounts as a result of the acquisition of CNB and successful business development. Other noninterest income for the three months ended March 31, 2007, decreased $0.6 million, compared with the same period in 2006, primarily as a result of a gain on the sale of a branch in 2006. Net securities losses for the three months ended March 31, 2007, were nominal, compared with net securities losses of $0.9 million for the three months ended March 31, 2006. Excluding the effect of these securities transactions, noninterest income increased $0.5 million, or 4.4%, for the three months ended March 31, 2007, compared with the same period in 2006.
Noninterest Expense and Income Tax Expense
Noninterest expense for the three months ended March 31, 2007, was $30.9 million, up from $30.5 million for the same period in 2006. Office expenses, such as supplies and postage, occupancy, equipment and data processing and communications charges, increased by $0.2 million, or 2.7%, for the three months ended March 31, 2007, compared with the same period in 2006. Salaries and employee benefits increased $0.2 million, or 1.4%, for the three months ended March 31, 2007, over the same period in 2006. Professional fees and services decreased $0.2 million, or 9.5%, for the three months ended March 31, 2007, compared with the same period in 2006 in large part due to a decrease in Information Technology and other consulting services. Amortization expense increased $0.1 million for the three months ended March 31, 2007, over the same period in 2006. This increase was due primarily to the acquisition of CNB in February 2006. Loan collection and other real estate owned expenses increased $0.2 million for the three months ended March 31, 2007, over the same period in 2006. This increase was due primarily to an increase in the amount of real estate taxes paid on foreclosures in 2007 compared with 2006. Other operating expense for the three months ended March 31, 2007, decreased $0.1 million, or 4.3%, compared with the same period in 2006. Income tax expense for the three months ended March 31, 2007, was $6.2 million, up from $5.6 million for the same period in 2006. The effective rate for the three months ended March 31, 2007, was 30.6%, up from 29.0% for the same period in 2006. The increase in the effective tax rate for the three months ended March 31, 2007, versus the same period in 2006 resulted primarily from a tax refund received in the first quarter of 2006.
Balance Sheet
Total assets were $5.1 billion at March 31, 2007, up $214.9 million from $4.9 billion at March 31, 2006. Loans and leases increased $147.6 million or 4.5% from $3.2 billion at March 31, 2006, to $3.4 billion at March 31, 2007, due primarily to growth in consumer loan products. Total deposits were $4.0 billion at March 31, 2007, up 9.6% from the same period at March 31, 2006, in large part due to growth in time deposits, money market accounts and savings accounts. Stockholders’ equity was $407.6 million, representing total equity to total assets of 7.99% at March 31, 2007, compared with $385.8 million or a total equity to total asset ratio of 7.90% at March 31, 2006.
Stock Repurchase Program
On April 23, 2007, 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 363,180 shares remaining under previous authorizations. These remaining shares were combined with this new authorization, increasing the total shares available for repurchase to 1,363,180. Under the authorized programs for the period, the Company purchased 373,967 shares of its common stock during the three months ended March 31, 2007, for a total of $8.6 million at an average price of $22.90 per share.
Dividend Declared
The NBT Board of Directors declared a first-quarter cash dividend of $0.20 per share at a meeting held today, representing a $0.01 per share, or 5.3%, increase from the cash dividend of $0.19 per share declared during the previous quarter. The dividend will be paid on June 15, 2007, to shareholders of record as of June 1, 2007.
Corporate Overview
NBT is a financial holding company headquartered in Norwich, NY, with total assets of $5.1 billion at March 31, 2007. 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 119 locations, including 80 NBT Bank offices in upstate New York and 39 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. Hathaway Insurance Agency, Inc., based in Gloversville, NY, is a full-service insurance agency. 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; and (7) 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.
NBT Bancorp Inc. and Subsidiaries SELECTED FINANCIAL HIGHLIGHTS |
| (unaudited) |
| | | 2007 | | 2006 | | Net Change | | Percent Change | |
| | | (dollars in thousands, except per share data) | | | | | |
| | | | | | | | | | |
Three Months Ended March 31, | | | | | | | | | |
| Net Income | | $ | 14,132 | | $ | 13,588 | | $ | 544 | | | 4% | |
| Diluted Earnings Per Share | | $ | 0.41 | | $ | 0.40 | | $ | 0.01 | | | 2% | |
| Weighted Average Diluted Common Shares Outstanding | | | 34,457,082 | | | 33,746,423 | | | 711,445 | | | 2% | |
| Return on Average Assets (1) | | | 1.13 | % | | 1.18 | % | | -0.05 | % | | -4% | |
| Return on Average Equity (1) | | | 14.06 | % | | 15.11 | % | | -1.05 | % | | -7% | |
| Net Interest Margin (2) | | | 3.63 | % | | 3.86 | % | | -0.23 | % | | -6% | |
| | | | | | | | | | | | | | |
Asset Quality | | March 31, | | December 31, | | March 31, | | | | |
| | | 2007 | | 2006 | | 2006 | | | | |
| Nonaccrual Loans | | $ | 16,294 | | $ | 13,665 | | $ | 12,616 | | | | |
| 90 Days Past Due and Still Accruing | | $ | 1,069 | | $ | 1,642 | | $ | 720 | | | | |
| Total Nonperforming Loans | | $ | 17,363 | | $ | 15,307 | | $ | 13,336 | | | | |
| Other Real Estate Owned (OREO) | | $ | 632 | | $ | 389 | | $ | 279 | | | | |
| Total Nonperforming Assets | | $ | 17,995 | | $ | 15,696 | | $ | 13,615 | | | | |
| Allowance for Loan and Lease Losses | | $ | 50,554 | | $ | 50,587 | | $ | 49,818 | | | | |
| Year-to-Date (YTD) Net Charge-Offs | | $ | 2,129 | | $ | 8,673 | | $ | 1,775 | | | | |
| Allowance for Loan and Lease Losses to Total Loans and Leases | | | 1.49 | % | | 1.48 | % | | 1.53 | % | | | |
| Total Nonperforming Loans to Total Loans and Leases | | | 0.51 | % | | 0.45 | % | | 0.41 | % | | | |
| Total Nonperforming Assets to Total Assets | | | 0.35 | % | | 0.31 | % | | 0.28 | % | | | |
| Allowance for Loan and Lease Losses to Total Nonperforming Loans | | | 291.16 | % | | 330.48 | % | | 373.56 | % | | | |
| Annualized Net Charge-Offs to YTD Average Loans and Leases | | | 0.25 | % | | 0.26 | % | | 0.23 | % | | | |
| | | | | | | | | | | | | | |
Capital | | | | | | | | | | | | | |
| Equity to Assets | | | 7.99 | % | | 7.94 | % | | 7.90 | % | | | |
| Book Value Per Share | | $ | 11.99 | | $ | 11.79 | | $ | 11.22 | | | | |
| Tangible Book Value Per Share | | $ | 8.61 | | $ | 8.42 | | $ | 7.84 | | | | |
| Tier 1 Leverage Ratio | | | 7.60 | % | | 7.57 | % | | 7.77 | % | | | |
| Tier 1 Capital Ratio | | | 10.53 | % | | 10.42 | % | | 10.30 | % | | | |
| Total Risk-Based Capital Ratio | | | 11.78 | % | | 11.67 | % | | 11.56 | % | | | |
Quarterly Common Stock Price | | 2007 | | 2006 | | 2005 | |
| Quarter End | | High | | Low | | High | | Low | | High | | Low | |
| March 31 | | $ | 25.81 | | $ | 21.73 | | $ | 23.90 | | $ | 21.02 | | $ | 25.66 | | $ | 21.48 | |
| June 30 | | | | | | | | | 23.24 | | | 21.03 | | | 24.15 | | | 20.10 | |
| September 30 | | | | | | | | | 24.57 | | | 21.44 | | | 25.50 | | | 22.79 | |
| December 31 | | | | | | | | | 26.47 | | | 22.36 | | | 23.79 | | | 20.75 | |
(2) Calculated on a FTE basis
NBT Bancorp Inc. and Subsidiaries SELECTED FINANCIAL HIGHLIGHTS |
(unaudited) |
| | | 2007 | | 2006 | | Net Change | | Percent Change | |
| (dollars in thousands, except per share data) |
Balance Sheet as of March 31, | | | | | | | | | |
| Loans and Leases | | $ | 3,395,476 | | $ | 3,247,841 | | $ | 147,635 | | | 5 | % |
| Earning Assets | | $ | 4,718,844 | | $ | 4,529,770 | | $ | 189,074 | | | 4 | % |
| Total Assets | | $ | 5,100,781 | | $ | 4,885,851 | | $ | 214,930 | | | 4 | % |
| Deposits | | $ | 3,966,655 | | $ | 3,620,061 | | $ | 346,594 | | | 10 | % |
| Stockholders’ Equity | | $ | 407,580 | | $ | 385,754 | | $ | 21,826 | | | 6 | % |
| | | | | | | | | | | | | | |
Average Balances | | | | | | | | | | | | | |
Quarter Ended March 31, | | | | | | | | | | | | | |
| Loans and Leases | | $ | 3,398,590 | | $ | 3,147,115 | | $ | 251,475 | | | 8 | % |
| Securities Available For Sale | | | | | | | | | | | | | |
| (excluding unrealized gains or losses) | | $ | 1,123,414 | | $ | 1,054,370 | | $ | 69,044 | | | 7 | % |
| Securities Held To Maturity | | $ | 140,856 | | $ | 97,347 | | $ | 43,509 | | | 45 | % |
| Regulatory Equity Investment | | $ | 34,804 | | $ | 40,549 | | $ | (5,745 | ) | | -14 | % |
| Short-Term Interest Bearing Accounts | | $ | 9,255 | | $ | 7,742 | | $ | 1,513 | | | 20 | % |
| Total Earning Assets | | $ | 4,706,919 | | $ | 4,347,123 | | $ | 359,796 | | | 8 | % |
| Total Assets | | $ | 5,068,491 | | $ | 4,666,163 | | $ | 402,328 | | | 9 | % |
| Interest Bearing Deposits | | $ | 3,245,152 | | $ | 2,809,696 | | $ | 435,456 | | | 15 | % |
| Non-Interest Bearing Deposits | | $ | 616,938 | | $ | 591,087 | | $ | 25,851 | | | 4 | % |
| Short-Term Borrowings | | $ | 265,347 | | $ | 371,632 | | $ | (106,285 | ) | | -29 | % |
| Long-Term Borrowings | | $ | 482,025 | | $ | 475,755 | | $ | 6,270 | | | 1 | % |
| Total Interest Bearing Liabilities | | $ | 3,992,524 | | $ | 3,657,083 | | $ | 335,441 | | | 9 | % |
| Stockholders’ Equity | | $ | 407,519 | | $ | 365,015 | | $ | 42,504 | | | 12 | % |
NBT Bancorp Inc. and Subsidiaries | | March 31, | | December 31, | | March 31, | |
Consolidated Balance Sheets (unaudited) | | 2007 | | 2006 | | 2006 | |
| (in thousands) | | | | | | | |
| | | | | | | | |
ASSETS | | | | | | | |
| Cash and due from banks | | $ | 132,494 | | $ | 130,936 | | $ | 123,593 | |
| Short term interest bearing accounts | | | 24,598 | | | 7,857 | | | 9,675 | |
| Securities available for sale, at fair value | | | 1,116,205 | | | 1,106,322 | | | 1,112,118 | |
| Securities held to maturity (fair value of $145,762, $136,287 and$102,338 at March 31, 2007, December 31, 2006 and March 31, 2006, respectively) | | | 145,760 | | | 136,314 | | | 102,754 | |
| Federal Reserve and Federal Home Loan Bank stock | | | 30,487 | | | 38,812 | | | 37,962 | |
| Loans and leases | | | 3,395,476 | | | 3,412,654 | | | 3,247,841 | |
| Less allowance for loan and lease losses | | | 50,554 | | | 50,587 | | | 49,818 | |
| Net loans and leases | | | 3,344,922 | | | 3,362,067 | | | 3,198,023 | |
| Premises and equipment, net | | | 65,784 | | | 66,982 | | | 67,889 | |
| Goodwill | | | 103,420 | | | 103,356 | | | 102,692 | |
| Intangible assets, net | | | 11,408 | | | 11,984 | | | 13,632 | |
| Bank owned life insurance | | | 42,217 | | | 41,783 | | | 40,535 | |
| Other assets | | | 83,486 | | | 81,159 | | | 76,978 | |
TOTAL ASSETS | | $ | 5,100,781 | | $ | 5,087,572 | | $ | 4,885,851 | |
| | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | |
| Deposits: | | | | | | | | | | |
| Demand (noninterest bearing) | | $ | 624,171 | | $ | 646,377 | | $ | 618,531 | |
| Savings, NOW, and money market | | | 1,632,222 | | | 1,566,557 | | | 1,546,840 | |
| Time | | | 1,710,262 | | | 1,583,304 | | | 1,454,690 | |
| Total deposits | | | 3,966,655 | | | 3,796,238 | | | 3,620,061 | |
| Short-term borrowings | | | 204,421 | | | 345,408 | | | 329,702 | |
| Long-term debt | | | 392,792 | | | 417,728 | | | 424,865 | |
| Trust preferred debentures | | | 75,422 | | | 75,422 | | | 75,422 | |
| Other liabilities | | | 53,911 | | | 48,959 | | | 50,047 | |
| Total liabilities | | | 4,693,201 | | | 4,683,755 | | | 4,500,097 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total stockholders' equity | | | 407,580 | | | 403,817 | | | 385,754 | |
| | | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 5,100,781 | | $ | 5,087,572 | | $ | 4,885,851 | |
NBT Bancorp Inc. and Subsidiaries | | Three months ended March 31, | |
Consolidated Statements of Income (unaudited) | | 2007 | | 2006 | |
| (in thousands, except per share data) | | | |
Interest, fee and dividend income: | | | | | |
| Loans and leases | | $ | 59,808 | | $ | 52,833 | |
| Securities available for sale | | | 13,467 | | | 11,877 | |
| Securities held to maturity | | | 1,444 | | | 985 | |
| Other | | | 740 | | | 611 | |
| Total interest, fee and dividend income | | | 75,459 | | | 66,306 | |
Interest expense: | | | | | | | |
| Deposits | | | 25,984 | | | 17,225 | |
| Short-term borrowings | | | 3,092 | | | 3,937 | |
| Long-term debt | | | 4,486 | | | 4,142 | |
| Trust preferred debentures | | | 1,268 | | | 883 | |
| Total interest expense | | | 34,830 | | | 26,187 | |
| Net interest income | | | 40,629 | | | 40,119 | |
| Provision for loan and lease losses | | | 2,096 | | | 1,728 | |
| Net interest income after provision for loan and lease losses | | | 38,533 | | | 38,391 | |
Noninterest income: | | | | | | | |
| Trust | | | 1,437 | | | 1,358 | |
| Service charges on deposit accounts | | | 4,469 | | | 4,219 | |
| ATM and debit card fees | | | 1,896 | | | 1,645 | |
| Broker/dealer and insurance revenue | | | 1,083 | | | 908 | |
| Net securities losses | | | (5 | ) | | (934 | ) |
| Bank owned life insurance income | | | 434 | | | 381 | |
| Retirement plan administration fees | | | 1,592 | | | 1,231 | |
| Other | | | 1,784 | | | 2,416 | |
| Total noninterest income | | | 12,690 | | | 11,224 | |
Noninterest expense: | | | | | | | |
| Salaries and employee benefits | | | 15,964 | | | 15,748 | |
| Office supplies and postage | | | 1,296 | | | 1,181 | |
| Occupancy | | | 3,169 | | | 2,988 | |
| Equipment | | | 1,933 | | | 2,156 | |
| Professional fees and outside services | | | 1,658 | | | 1,832 | |
| Data processing and communications | | | 2,877 | | | 2,702 | |
| Amortization of intangible assets | | | 409 | | | 323 | |
| Loan collection and other real estate owned | | | 377 | | | 211 | |
| Other operating | | | 3,189 | | | 3,331 | |
| Total noninterest expense | | | 30,872 | | | 30,472 | |
| Income before income taxes | | | 20,351 | | | 19,143 | |
| Income taxes | | | 6,219 | | | 5,555 | |
Net income | | $ | 14,132 | | $ | 13,588 | |
| Earnings Per Share: | | | | | | | |
| Basic | | $ | 0.41 | | $ | 0.41 | |
| Diluted | | $ | 0.41 | | $ | 0.40 | |
NBT Bancorp Inc. and Subsidiaries | | 1Q | | 4Q | | 3Q | | 2Q | | 1Q | |
Quarterly Consolidated Statements of Income (unaudited) | | 2007 | | 2006 | | 2006 | | 2006 | | 2006 | |
| (in thousands, except per share data) | | | | | | | | | | | |
Interest, fee and dividend income: | | | | | | | | | | | |
| Loans and leases | | $ | 59,808 | | $ | 60,795 | | $ | 59,329 | | $ | 57,085 | | $ | 52,833 | |
| Securities available for sale | | | 13,467 | | | 13,296 | | | 13,342 | | | 13,084 | | | 11,877 | |
| Securities held to maturity | | | 1,444 | | | 1,409 | | | 1,293 | | | 1,043 | | | 985 | |
| Other | | | 740 | | | 517 | | | 724 | | | 619 | | | 611 | |
| Total interest, fee and dividend income | | | 75,459 | | | 76,017 | | | 74,688 | | | 71,831 | | | 66,306 | |
Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 25,984 | | | 25,652 | | | 24,052 | | | 20,869 | | | 17,225 | |
| Short-term borrowings | | | 3,092 | | | 3,572 | | | 3,828 | | | 4,111 | | | 3,937 | |
| Long-term debt | | | 4,486 | | | 4,091 | | | 4,603 | | | 4,227 | | | 4,142 | |
| Trust preferred debentures | | | 1,268 | | | 1,277 | | | 1,285 | | | 1,255 | | | 883 | |
| Total interest expense | | | 34,830 | | | 34,592 | | | 33,768 | | | 30,462 | | | 26,187 | |
| Net interest income | | | 40,629 | | | 41,425 | | | 40,920 | | | 41,369 | | | 40,119 | |
| Provision for loan and lease losses | | | 2,096 | | | 3,484 | | | 2,480 | | | 1,703 | | | 1,728 | |
| Net interest income after provision for loan and lease losses | | | 38,533 | | | 37,941 | | | 38,440 | | | 39,666 | | | 38,391 | |
Noninterest income: | | | | | | | | | | | | | | | | |
| Trust | | | 1,437 | | | 1,387 | | | 1,425 | | | 1,459 | | | 1,358 | |
| Service charges on deposit accounts | | | 4,469 | | | 4,418 | | | 4,460 | | | 4,493 | | | 4,219 | |
| ATM and debit card fees | | | 1,896 | | | 1,764 | | | 1,888 | | | 1,789 | | | 1,645 | |
| Broker/dealer and insurance fees | | | 1,083 | | | 1,037 | | | 1,024 | | | 967 | | | 908 | |
| Net securities (losses) gains | | | (5 | ) | | 30 | | | 7 | | | 22 | | | (934 | ) |
| Bank owned life insurance income | | | 434 | | | 425 | | | 431 | | | 392 | | | 381 | |
| Retirement plan administration fees | | | 1,592 | | | 1,424 | | | 1,450 | | | 1,431 | | | 1,231 | |
| Other | | | 1,784 | | | 1,847 | | | 1,832 | | | 2,003 | | | 2,416 | |
| Total noninterest income | | | 12,690 | | | 12,332 | | | 12,517 | | | 12,556 | | | 11,224 | |
Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 15,964 | | | 15,166 | | | 15,628 | | | 16,335 | | | 15,748 | |
| Office supplies and postage | | | 1,296 | | | 1,418 | | | 1,275 | | | 1,456 | | | 1,181 | |
| Occupancy | | | 3,169 | | | 2,739 | | | 3,044 | | | 2,747 | | | 2,988 | |
| Equipment | | | 1,933 | | | 2,069 | | | 2,040 | | | 2,067 | | | 2,156 | |
| Professional fees and outside services | | | 1,658 | | | 2,502 | | | 1,627 | | | 1,800 | | | 1,832 | |
| Data processing and communications | | | 2,877 | | | 2,466 | | | 2,637 | | | 2,649 | | | 2,702 | |
| Amortization of intangible assets | | | 409 | | | 389 | | | 471 | | | 466 | | | 323 | |
| Loan collection and other real estate owned | | | 377 | | | 629 | | | 222 | | | 289 | | | 211 | |
| Other operating | | | 3,189 | | | 3,504 | | | 2,974 | | | 3,885 | | | 3,331 | |
| Total noninterest expense | | | 30,872 | | | 30,882 | | | 29,918 | | | 31,694 | | | 30,472 | |
| Income before income taxes | | | 20,351 | | | 19,391 | | | 21,039 | | | 20,528 | | | 19,143 | |
| Income taxes | | | 6,219 | | | 5,743 | | | 6,497 | | | 6,359 | | | 5,555 | |
Net income | | $ | 14,132 | | $ | 13,648 | | $ | 14,542 | | $ | 14,169 | | $ | 13,588 | |
| Earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.41 | | $ | 0.40 | | $ | 0.43 | | $ | 0.41 | | $ | 0.41 | |
| Diluted | | $ | 0.41 | | $ | 0.40 | | $ | 0.43 | | $ | 0.41 | | $ | 0.40 | |
