First Community Bankshares (FCBC) 8-K First Community Bancshares, Inc. Announces Second Quarter Results and Strategic Changes at Mortgage Subsidiary

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:
July 23, 2004 FOR MORE INFORMATION,
CONTACT: Robert L. Schumacher
at (276) 326-9000

First Community Bancshares, Inc. Announces
Second Quarter Results and Strategic Changes at Mortgage Subsidiary

     Bluefield, Virginia — First Community Bancshares, Inc. (NASDAQ): FCBC; (www.fcbinc.com) released quarterly results today along with information related to the discontinuance of its wholesale mortgage line of business at its mortgage subsidiary. Net income for the three and six month periods in 2004 was impacted by actions associated with the discontinued operations of the mortgage subsidiary, discussed below. Net income for the second quarter of 2004 was $5.6 million or $0.49 per diluted share compared to $7 million or $0.63 per diluted share in the second quarter of 2003. Net income for the six months ended June 30, 2004 was $9.7 million or $0.86 per diluted share compared with $13.7 million or $1.25 per diluted share for the six months ended June 30, 2003. Return on average equity and return on average assets were 12.76% and 1.20% for the second quarter of 2004 and 11.07% and 1.10% for the six months ended June 30, 2004. This compares with 17.29% and 1.78% for the second quarter of 2003 and 17.46% and 1.79% for the six months ended June 30, 2003.

     Income from continuing operations for the second quarter of 2004 totaled $7.5 million, or $0.66 basic and diluted earnings per share. This represents a per share improvement of 11.86% compared to the $0.59 per basic and diluted share from continuing operations for the second quarter of 2003. Return on average equity in the second quarter of 2004 from continuing operations was 17.04% compared to 15.99% for the second quarter of last year. Return on average assets for continuing operations was 1.62% compared to 1.71% for the second quarter of last year.

     On July 8, First Community announced the termination of a previously announced sale of its mortgage subsidiary. While the mortgage banking subsidiary continues to be held for sale, termination of the previously announced sale led to the elimination of the wholesale portion of the mortgage company’s business and substantial downsizing of the remaining retail division. In connection with the exit of its wholesale mortgage banking business and as previously

reported, the company recorded impairment charges of $933,000 in the second quarter of 2004 (and $1,385,000 for the first six months of 2004) to reduce the carrying value of the subsidiary to its estimated fair value less costs to sell. To facilitate its decision to exit the wholesale mortgage banking business, First Community has provided management and professional resources to settle the mortgage company’s wholesale interest rate lock commitments; has overseen a transition in management at the mortgage company; and has taken steps to reduce overhead for the company’s remaining mortgage business, which will be offered through its retail network. The strategic decision to exit the wholesale mortgage business will reduce the Company’s exposure to risk associated with the large fluctuations previously experienced in the volume-driven, wholesale business and its hedged interest rate lock commitments and closed loans. The change in strategic direction and decision to exit the wholesale mortgage business will permit the Company to focus its resources on its core community banking business, which has continued to grow and perform. The results of operations of the mortgage company are reported as discontinued operations. The loss from discontinued operations was $1.9 million or $0.17 per diluted share for the second quarter of 2004 and $3.3 million or $0.29 per diluted share for the six months ended June 30, 2004.

     When comparing the second quarter 2004 earnings from continuing operations with that of the second quarter of 2003, the $1.0 million improvement is attributed to a $2.1 million increase in net interest income coupled with a $2.1 million rise in non-interest income, a portion of which is the result of a $1.4 million gain on sale of available-for-sale securities. The improvement in net interest income is due in large measure to $161 million growth in the loan portfolio, $134 million of which came from the Company’s second quarter acquisition of PCB Bancorp, Inc. in East Tennessee. The securities gain was the result of a decision to capture appreciation inherent in a portion of the corporate bond sector of the Company’s available-for-sale investment portfolio, the market value of which continued to decline in step with the flattening of the Treasury yield curve. The proceeds from the sale of these securities provided sufficient liquidity to pay-off overnight borrowings and assisted the Company in funding increased loan demand. The Company improved its results from continuing operations for the second quarter of 2004 despite a $2.1 million increase in salaries and related employee benefits plus increases in other overhead and operating expenses associated primarily with the acquisition of PCB Bancorp, Inc. in East Tennessee, the acquisition of CommonWealth Bank in Eastern Virginia, increased costs in existing employee retirement plans and costs associated with

continued development and growth of branches and loan production offices in Winston-Salem and Charlotte, North Carolina.

     Income from continuing operations for the six months ended June 30, 2004 was $13.2 million, versus $12.8 million for the six months ended June 30, 2003. Contributing to this increase in income from continuing operations was a $3.0 million or 9.9% increase in net interest income and a $2.3 million or 34.6% increase in non-interest income. The increase in non-interest income is largely the result of an 11.9% or $450,000 improvement in service charges on deposit accounts and a 19% or $200,000 enhancement in other service charges, coupled with the gain on the sale of securities as discussed above. Total non-interest expenses increased by 33.4% or $5.9 million for the six months ended June 30, 2004. A 37.2% or $3.5 million increase in salaries and benefits and a $1.5 million increase in other operating expenses account for 85% of this increase, which is associated with the Company’s expansion into Eastern Virginia, East Tennessee, Charlotte and Winston-Salem, North Carolina, which brings with it the associated cost for additional corporate services, support, added technology and infrastructure. The financial performance attributed to continuing operations of the Company equate to $1.16 basic and $1.15 diluted earnings per share for the first six months of 2004 versus $1.17 basic and diluted earnings per share for the first six months of 2003. Return on average equity from continuing operations for the first six months of 2004 was 14.83% compared to 16.25% for the first six months of last year. Return on average assets from continuing operations was 1.50% compared to 1.73% for the first six months of 2003.

     The provision for loan losses for the six months ended June 30, 2004 decreased by $642,000 from the comparable period in the prior year, with $585,000 of that decrease coming in the second quarter. The decline in provision is directionally consistent with the improvement in asset quality as First Community’s overall asset quality ratios continue to reflect improvement. The ratio of non-performing assets to total assets was 0.26% on June 30, 2004, an improvement compared to the 0.37% at March 31, 2004. Non-accrual loans stood at $2.6 million at June 30, 2004, a $1.0 million improvement compared to the $3.6 million at March 31, 2004 and $400,000 better than the $3.0 million at December 31, 2003. Total delinquencies as a percent of total loans were 0.67%, bettering the 1.04% at both March 31, 2004 and December 31, 2003. The coverage ratio at June 30, 2004 was 614.5% compared to 405.1% at March 31, 2004.

     Assets at June 30, 2004 increased to $1.85 billion versus $1.66 billion at year-end 2003. Asset growth for the six-month period includes $168 million resulting from the acquisition of People’s Community Bank in Johnson City, Tennessee. Total equity for the Company stood at $171.3 million resulting in book value per common share outstanding of $15.27 at June 30, 2004, compared to $178 million and $15.83 at March 31, 2004. The decrease in equity at June 30, 2004 is due to a decline in comprehensive income attributed to a decrease in the unrealized gains in securities available for sale.

     The Company’s net interest margin, which increased to 4.46% for the second quarter 2004 compared to 4.41% at the end of the first quarter 2004, was compressed when compared to the 4.55% net interest margin at June 30, 2003. The net interest margin increase for the second quarter 2004 was attributed to an increase in the volume of earning assets of $127.0 million during the second quarter, the result of the acquisition of People’s Community Bank (PCB Bancorp) in the second quarter of 2004. PCB contributed $1.3 million to the consolidated net interest income increase. The Company attributes the decrease in net interest margin for the quarters ended June 30, 2004 vs. June 30 2003 to reduced loan yields on new and renewed business throughout the prevailing low interest rate environment. During the second quarter 2004, tax equivalent net interest income increased by $8.9 million due to volume and decreased $6.5 million as a result of rate changes resulting in a net increase of $2.4 million.

     First Community Bancshares, Inc. headquartered in Bluefield, Virginia, is a $1.85 billion bank holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through 52 full-service banking locations, two trust and investment management offices in the four states of Virginia, West Virginia, North Carolina and Tennessee. First Community Bank is also the parent of Stone Capital Management, Inc., a SEC registered investment advisory firm, which offers wealth management and investment advice and United First Mortgage, Inc., which operates 4 retail mortgage offices in Virginia. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ National market under the symbol “FCBC”.

DISCLAIMER

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

First Community Bancshares, Inc.		Six Months Ended						Three Months Ended
Consolidated Statements of Income		June 30,						June 30,
(Dollars in Thousands, Except Per Share Data)(Unaudited)		2004			2003			2004			2003
Interest	Interest and fees on loans held for investment	$	36,242		$	33,874		$	19,112		$	16,982
	Interest on securities-taxable		6,699			6,519			3,433			3,385
	Interest on securities-nontaxable		3,343			3,299			1,707			1,642
	Interest on federal funds sold and deposits		301			358			104			143
	Total interest income		46,585			44,050			24,356			22,152
Interest	Interest on deposits		9,128			10,459			4,813			5,142
Expense	Interest on borrowings		3,846			3,015			1,916			1,490
	Total interest expense		12,974			13,474			6,729			6,632
	Net interest income		33,611			30,576			17,627			15,520
	Provision for loan losses		1,255			1,897			723			1,308
	Net interest income after provision for loan losses		32,356			28,679			16,904			14,212
Non-Interest	Fiduciary income		930			981			512			649
Income	Service charges on deposit accounts		4,261			3,807			2,301			1,986
	Other service charges, commissions and fees		1,272			1,069			713			472
	Other operating income		905			541			610			244
	Gain on sale of securities		1,449			153			1,438			133
	Total non-interest income		8,817			6,551			5,574			3,484
Non-Interest	Salaries and employee benefits		12,987			9,466			6,874			4,784
Expense	Occupancy expense of bank premises		1,746			1,456			894			720
	Furniture and equipment expense		1,373			895			747			442
	Amortization of intangible assets		175			114			111			51
	Other operating expense		7,067			5,566			3,812			2,756
	Total non-interest expense		23,348			17,497			12,438			8,753
	Income from continuing operations before income taxes		17,825			17,733			10,040			8,943
	Income tax expense continuing operations		4,766			4,969			2,583			2,499
	Income from continuing operations	$	13,059		$	12,764		$	7,457		$	6,444
	(Loss) income from discontinued operations before tax	$	(4,265	)	$	1,557		$	(2,374	)	$	856
	Income tax (benefit) expense discontinued operations	$	(952	)	$	606		$	(502	)	$	333
	(Loss) income from discontinued operations	$	(3,313	)	$	951		$	(1,872	)	$	523
	Net income	$	9,746		$	13,715		$	5,585		$	6,967
	Basic earnings per common share (EPS)	$	0.87		$	1.25		$	0.50		$	0.63
	Diluted earnings per common share (DEPS)	$	0.86		$	1.25		$	0.49		$	0.63
	Basic earnings per common share-continuing operations	$	1.16		$	1.17		$	0.66		$	0.59
	Diluted earnings per common share-continuing operations	$	1.15		$	1.17		$	0.66		$	0.59
	Weighted Average Shares Outstanding:
	Basic		11,237,225			10,937,927			11,228,956			10,969,748
	Diluted		11,334,096			11,021,010			11,320,415			11,084,847
	For the period:
	Return on average equity		11.07	%		17.46	%		12.76	%		17.29	%
	Return on average equity-continuing operations		14.83	%		16.25	%		17.04	%		15.99	%
	Return on average assets		1.10	%		1.79	%		1.20	%		1.78	%
	Return on average assets-continuing operations		1.50	%		1.73	%		1.62	%		1.71	%
	Cash dividends per share	$	0.50		$	0.47		$	0.25		$	0.23
	At period end:
	Book value per share	$	15.27		$	15.57		$	15.27		$	15.57
	Market value	$	33.50		$	31.99		$	33.50		$	31.99

First Community Bancshares, Inc.
Consolidated Balance Sheets
(Dollars in Thousands, Except Per Share Data)(Unaudited)

		June 30,			December 31,
		2004			2003
Assets	Cash and due from banks	$	41,533		$	37,173
	Interest-bearing deposits with banks		14,799			22,136
	Securities available for sale (amortized cost of $432,782 June 30, 2004; $435,912, December 31, 2003)		429,478			444,194
	Securities held to maturity (fair value of $39,629 March 31, 2004; $40,060, December 31, 2003)		36,209			38,020
	Loans held for sale		774			424
	Loans held for investment, net of unearned income		1,186,954			1,026,191
	Less allowance for loan losses		16,160			14,624
	Net loans		1,170,794			1,011,567
	Premises and equipment		35,071			29,816
	Other real estate owned		2,166			2,091
	Interest receivable		8,653			8,327
	Other assets		25,649			17,266
	Intangible assets		62,003			39,341
	Assets related to discontinued operations		22,192			22,372
	Total Assets	$	1,849,321		$	1,672,727
Liabilities	Deposits:
	Demand	$	225,241		$	194,046
	Interest-bearing demand		318,932			234,458
	Savings		224,706			190,366
	Time		626,150			606,666
	Total Deposits		1,395,029			1,225,536
	Interest, taxes and other liabilities		11,714			11,897
	Securities sold under agreements to repurchase		109,252			97,651
	FHLB and other indebtedness		140,941			144,616
	Liabilities related to discontinued operations		21,130			17,992
	Total Liabilities		1,678,066			1,497,692
Stockholders'
Equity	Preferred stock, par value undesignated; 1,000,000 shares authorized; no shares issued and outstanding in 2004 and 2003		—			—
	Common stock, $1 par value; 15,000,000 shares authorized in 2004 and 2003, respectively; 11,451,062 issued in 2004 and 11,442,348 issued in 2003; and 11,215,473 and 11,242,443 outstanding in 2004 and 2003, respectively		11,451			11,442
	Additional paid-in capital		108,078			108,128
	Retained earnings		61,023			56,894
	Treasury stock, at cost		(7,321	)		(6,407	)
	Accumulated other comprehensive (loss) income		(1,976	)		4,978
	Total Stockholders’ Equity		171,255			175,035
	Total Liabilities and Stockholders’ Equity	$	1,849,321		$	1,672,727

First Community Bancshares, Inc.		As of and for the Quarter Ended
Quarterly Performance Summary
Income Statements		June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in Thousands Except Per Share Data)		2004			2004			2003			2003			2003
Interest	Interest and fees on loans held for investment	$	19,112		$	17,130		$	17,967		$	18,591		$	16,982
Income	Interest on securities-taxable		3,433			3,266			3,528			3,070			3,385
	Interest on securities-nontaxable		1,707			1,636			1,637			1,552			1,642
	Interest on federal funds sold and deposits		104			197			122			124			143
	Total interest income		24,356			22,229			23,254			23,337			22,152
Interest	Interest on deposits		4,813			4,315			4,557			4,934			5,142
Expense	Interest on borrowings		1,916			1,930			1,797			1,635			1,490
	Total interest expense		6,729			6,245			6,354			6,569			6,632
	Net interest income		17,627			15,984			16,900			16,768			15,520
	Provision for loan losses		723			532			740			782			1,308
	Net interest income after provision for loan losses		16,904			15,452			16,160			15,986			14,212
Non-Int	Fiduciary income		512			418			258			549			649
Income	Service charges on deposit accounts		2,301			1,960			2,166			2,098			1,986
	Other service charges, commissions and fees		713			559			762			553			472
	Mortgage banking income		—			—			—			—			—
	Other operating income		610			295			317			340			244
	Gain (loss) on Securities		1,438			11			(90	)		1,038			133
	Total non-interest income		5,574			3,243			3,413			4,578			3,484
Non-Int	Salaries and employee benefits		6,874			6,113			5,547			5,631			4,784
Expense	Occupancy expense of bank premises		894			852			704			752			720
	Furniture and equipment expense		747			626			567			532			442
	Amortization of intangible assets		111			64			65			64			51
	Other operating expense		3,812			3,255			3,028			3,203			2,756
	Total non-interest expense		12,438			10,910			9,911			10,182			8,753
	Income before income taxes-continuing operations		10,040			7,785			9,662			10,382			8,943
	Income tax expense-continuing operations		2,583			2,183			2,925			3,164			2,499
	Income from continuing operations		7,457			5,602			6,737			7,218			6,444
	(Loss) income before tax-discontinued operations		(2,374	)		(1,891	)		(2,110	)		(1,621	)		856
	Income tax (benefit) expense-discontinued operations		(502	)		(450	)		(667	)		(632	)		333
	(Loss) income from discontinued operations		(1,872	)		(1,441	)		(1,443	)		(989	)		523
	Net income		5,585			4,161			5,294			6,229			6,967
Per	Basic EPS	$	0.50		$	0.37		$	0.47		$	0.55		$	0.63
Share	Diluted EPS	$	0.49		$	0.37		$	0.47		$	0.55		$	0.63
	Basic EPS from continuing operations	$	0.66		$	0.50		$	0.60		$	0.64		$	0.59
	Diluted EPS from continuing operations	$	0.66		$	0.49		$	0.59		$	0.64		$	0.59
Data	Cash dividends per share	$	0.25		$	0.25		$	0.25		$	0.25		$	0.24
	Weighted Average Shares Outstanding:
	Basic		11,228,956			11,245,465			11,244,382			11,262,180			10,969,748
	Diluted		11,320,415			11,347,748			11,362,269			11,383,941			11,084,847
	Actual shares outstanding at period end		11,215,473			11,244,894			11,242,443			11,250,931			11,256,674
	Book Value per share at period end	$	15.27		$	15.83		$	15.57		$	15.33		$	15.57
	Market Value per share at period end	$	33.50		$	30.54		$	33.16		$	35.29		$	35.58

First Community Bancshares, Inc.	As of and for the Quarter Ended
Quarterly Performance Summary
Income Statements	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in Thousands Except Per Share Data)	2004			2004			2003			2003			2003
Ratios:
Return on average assets		1.20	%		1.00	%		1.25	%		1.46	%		1.78	%
Return on average assets-continuing		1.62	%		1.36	%		1.61	%		1.75	%		1.71	%
Return on average equity		12.76	%		9.40	%		12.01	%		14.10	%		17.29	%
Return on average equity-continuing		17.04	%		12.66	%		15.28	%		16.34	%		15.99	%
Net yield on earning assets		4.46	%		4.41	%		4.56	%		4.55	%		4.55	%
Net yield on earning assets-continuing		4.51	%		4.45	%		4.63	%		4.66	%		4.69	%
Efficiency Ratio at end of period		60.45	%		61.71	%		51.92	%		51.16	%		48.68	%
Efficiency Ratio at end of period-continuing		49.67	%		51.26	%		44.76	%		45.05	%		43.96	%
Equity as a percent of total assets at end of period		9.27	%		10.51	%		10.46	%		10.27	%		10.31	%
Equity as a percent of continuing assets at end of period		9.38	%		10.71	%		10.61	%		10.41	%		10.64	%
Average earning assets as a percentage of average total assets		90.96	%		92.21	%		91.92	%		91.91	%		92.67	%
Average earning assets-continuing as a percentage of average total assets continuing		91.12	%		92.37	%		92.18	%		91.99	%		92.84	%
Average loans (not including loans held for sale) as a percentage of average deposits		83.38	%		83.10	%		84.17	%		83.04	%		79.23	%
QTD Averages:
Average Loans (Not including Loans Held for Sale)	$	1,171,562		$	1,016,309		$	1,034,786		$	1,030,875		$	931,488
Average Earning Assets	$	1,708,139		$	1,543,157		$	1,545,585		$	1,559,472		$	1,454,319
Average Earning Assets-continuing	$	1,682,841		$	1,527,932		$	1,527,098		$	1,501,239		$	1,406,836
Average Total Assets	$	1,878,000		$	1,673,585		$	1,681,510		$	1,696,647		$	1,569,302
Average Total Assets-continuing	$	1,846,772		$	1,654,119		$	1,656,714		$	1,632,044		$	1,515,298
Average Deposits	$	1,405,121		$	1,223,032		$	1,229,439		$	1,241,420		$	1,175,618
Average Deposits-continuing	$	1,405,070		$	1,222,971		$	1,229,351		$	1,241,313		$	1,175,526
Average Equity	$	176,034		$	178,037		$	174,923		$	175,228		$	161,622
Taxable Equivalent Net Interest Income	$	18,948		$	16,937		$	17,773		$	17,899		$	16,504
Taxable Equivalent Net Interest Income-continuing	$	18,873		$	16,889		$	17,806		$	17,634		$	16,437
Average Interest-bearing deposits	$	1,182,311		$	1,036,976		$	1,038,341		$	1,046,364		$	1,008,130
Average Interest-bearing deposits-continuing	$	1,182,311		$	1,036,976		$	1,038,341		$	1,046,364		$	1,008,130

First Community Bancshares, Inc.
Quarterly Performance Summary
Balance Sheets

	(Dollars in Thousands Except Per Share Data)
	June 30,			March 31,			December 31,			September 30,			June 30,
	2004			2004			2003			2003			2003
Cash and due from banks	$	41,533		$	36,389		$	37,173		$	30,915		$	41,081
Interest-bearing deposits with banks		14,799			40,157			22,136			76,309			25,795
Federal funds sold		—			—			—			—			7,353
Securities available for sale		429,478			443,657			444,194			395,203			419,523
Securities held to maturity		36,209			37,425			38,020			39,433			39,745
Loans held for sale		774			257			424			206			1,285
Loans held for investment, net of unearned income		1,186,954			1,019,829			1,026,191			1,028,189			1,026,643
Less allowance for loan losses		16,160			14,536			14,624			15,680			15,707
Net loans		1,170,794			1,005,293			1,011,567			1,012,509			1,010,936
Premises and equipment		35,071			30,507			29,816			29,467			29,267
Other real estate owned		2,166			2,571			2,091			2,403			2,787
Interest receivable		8,653			8,434			8,327			8,388			8,333
Other assets		25,649			18,269			17,266			24,647			22,251
Intangible assets		62,003			39,226			39,341			38,121			39,518
Assets of discontinued operations		22,192			32,275			22,372			21,735			52,438
Total Assets	$	1,849,321		$	1,694,460		$	1,672,727		$	1,679,336		$	1,700,312
Deposits:
Demand	$	225,241		$	197,282		$	194,046		$	193,941		$	210,347
Interest-bearing demand		318,932			243,226			234,458			234,737			234,551
Savings		224,706			194,722			190,366			188,021			185,284
Time		626,150			607,426			606,666			615,680			626,539
Total Deposits		1,395,029			1,242,656			1,225,536			1,232,379			1,256,721
Interest, taxes and other liabilities		11,714			12,619			11,897			12,474			21,513
Securities sold under agreements to repurchase		109,252			98,035			97,651			102,449			93,742
FHLB and other indebtedness		140,941			133,774			144,616			143,635			107,398
Liabilities of discontinued operations		21,130			29,342			17,992			15,915			45,630
Total Liabilities		1,678,066			1,516,426			1,497,692			1,506,852			1,525,004
Preferred Stock		—			—			—			—			—
Common stock, $1 par value		11,451			11,450			11,442			11,433			11,390
Additional paid-in capital		108,078			108,243			108,128			108,078			108,286
Retained earnings		61,023			58,241			56,894			54,407			51,149
Treasury stock, at cost		(7,321	)		(6,566	)		(6,407	)		(5,762	)		(4,028	)
Accumulated other comprehensive (loss) income		(1,976	)		6,666			4,978			4,328			8,511
Total Stockholders’ Equity		171,255			178,034			175,035			172,484			175,308
Total Liabilities and Stockholders’ Equity	$	1,849,321		$	1,694,460		$	1,672,727		$	1,679,336		$	1,700,312

First Community Bancshares, Inc.
Selected Financial Information
(Dollars in Thousands)

	As of and for the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2004			2004			2003			2003			2003
Asset Quality Analysis:
Allowance for Loan Losses:
Beginning balance	$	14,536		$	14,624		$	15,680		$	15,707		$	13,782
Provision		723			532			740			782			1,308
Acquisition balance		1,786			—			—			—			1,583
Charge-offs		(1,233	)		(911	)		(2,022	)		(990	)		(1,441	)
Recoveries		348			291			226			181			475
Net charge-offs		(885	)		(620	)		(1,796	)		(809	)		(966	)
Ending balance	$	16,160		$	14,536		$	14,624		$	15,680		$	15,707
Nonperforming Assets:
Nonaccrual loans	$	2,630		$	3,588		$	2,993		$	2,277		$	2,547
Foreclosed real estate		2,166			2,571			2,091			2,403			2,787
Repossessions		92			60			75			125			140
Loans 90 days or more past due & still accruing		—			—			—			124			86
Nonperforming assets	$	4,888		$	6,219		$	5,159		$	4,929		$	5,560
Loans 90 days or more past due & still accruing as a percentage of loans held for investment		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%
Asset Quality Ratios:
Nonaccrual loans and leases as a percentage of loans held for investment		0.22	%		0.35	%		0.29	%		0.22	%		0.25	%
Nonperforming assets as a percentage of:
Total assets		0.26	%		0.37	%		0.31	%		0.29	%		0.33	%
Total assets-continued		0.27	%		0.37	%		0.31	%		0.30	%		0.34	%
Loans held for investment plus foreclosed property		0.41	%		0.61	%		0.50	%		0.48	%		0.54	%
Net charge-offs as a % of average loans held for investment		0.08	%		0.06	%		0.17	%		0.08	%		0.10	%
Allowance for loan & lease losses as a percentage of loans held for investment		1.36	%		1.43	%		1.43	%		1.53	%		1.53	%
Ratio of allowance for loan losses to:
Nonaccrual loans		6.14			4.05			4.89			6.89			6.17
Restructured loans performing according to modified terms	$	382		$	392		$	356		$	362		$	368