First Community Bankshares (FCBC) 8-K First Community Bancshares, Inc. Announces Record Second Quarter and Year-to-Date Earnings

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
July 25, 2006	CONTACT:David D. Brown
	(276) 326-9000

First Community Bancshares, Inc. Announces Record Second Quarter and Year-to-Date Earnings

Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported record earnings of $7.3 million for the second quarter of 2006, or $0.65 diluted earnings per share. This represents an 18% increase over second quarter 2005 earnings of $6.2 million, or $0.55 diluted earnings per share. Return on average assets for the second quarter of 2006 was 1.47%, compared to 1.31% for the second quarter of 2005. Return on average equity for the second quarter of 2006 was 14.74%, compared to 13.19% for the same period in 2005.

Year-to-date earnings were $14.1 million, or $1.25 diluted earnings per share, a 16% increase over the same period of 2005. Return on average assets for the period was 1.45% and return on average equity was 14.42% for the period.

During the second quarter, the Bank sold its Drakes Branch, Virginia branch location. The transaction resulted in a net deposit premium of approximately $702 thousand. The branch sale was the second of three divestitures determined by an evaluation of the branch network. The branch held approximately $16.4 million in deposits and customer repurchase agreements and approximately $1.9 million in loans.

Operations for the most recent quarter were improved through a 5.4% reduction in total operating costs compared to the corresponding quarter in 2005. The cost reductions are the result of the Company’s initiatives for achieving greater efficiency which have led to an 11% reduction in full-time equivalent employees since year-end 2005. Total salaries and benefits decreased $670 thousand between second quarter 2005 and 2006, and decreased $1.1 million compared to first quarter 2006.

Provision for loan losses was down $262 thousand and $545 thousand for the three- and six-month periods in 2006 compared with the preceding year. These reductions reflect continued improvement in overall asset quality and improving metrics utilized within the allowance methodology. Other financial highlights are as follows:

Financial Highlights
Second Quarter 2006

• Interest income was $30.0 million, an improvement of $3.2 million, or 12%, over second quarter 2005. The increase was due primarily to increases in benchmark interest rates.

• Net interest income was down from the second quarter of 2005 due to increases in interest expense. Second quarter interest expense was $3.6 million, or 43%, greater than 2005. On a linked-quarter basis, interest expense increased almost $1 million. Despite the growing interest costs, tax-equivalent net interest margin was 4.28%, down slightly from 4.32% for the first quarter of 2006, and from 4.51% for the second quarter of 2005.

• Non-interest income was $5.5 million. Excluding the gain from the branch sale, non-interest income was $4.8 million compared to $4.6 million a year ago, a 5.4% increase. Service charges on deposit accounts increased $32 thousand, and other service charges and fees increased $40 thousand. The sale of the Drakes Branch, Virginia, banking office resulted in gains of approximately $702 thousand.

• Non-interest expense for the second quarter was $12.6 million, a decrease of $745 thousand from last quarter and $713 thousand from second quarter of 2005. The decreases can be attributed to the extensive cost-savings measures implemented by the Company during the past three quarters. Salaries and benefits decreased $1.1 million from last quarter and $670 thousand from second quarter of 2005. Excluding the effects of the branch sale gains and non-recurring charge-offs, the efficiency ratio was 50.5% compared to 54.6% in 2005.

• Credit quality remains sound with total delinquencies as a percent of total loans at 0.45% at June 30, 2006, compared to 0.60% at June 30, 2005 and 0.79% at December 31, 2005. The ratio of allowance for loan losses as a percent of loans held for investment was 1.12% compared to 1.23% at June 30, 2005. The provision for loan losses was $811 thousand compared to $1.1 million. Net charge-offs were $898 thousand compared to $1.2 million for second quarter 2005.

• During the second quarter, the board of directors declared a dividend to stockholders of twenty-six cents ($0.26). The dividend represents an increase of 2.0% over the $0.255 per share paid in the second quarter of 2005. 2006 is projected to be the 15^th consecutive year of dividend increases to stockholders. Dividends have increased at an average annual rate of over 10% since 1991. The second quarter dividend yield was 3.2% based on the quarter-end market value.

Year-to-Date 2006

• Interest income grew $7.0 million, or 13%, compared to the same period of 2005. Tax-equivalent net interest margin was 4.30% compared to 4.49%.

• Non-interest income was $10.7 million, an increase over prior year of $2.4 million, or 29%. The bulk of the increase was due to gains realized from the branch sale and a first quarter recovery from a previous fraud loss. Service charges on deposit accounts increased 6.3%, and other service charges, commissions and fees increased 9.1%.

• Compared to prior year, non-interest expense increased only slightly to $25.9 million. The Company’s expense control measures are the major reason behind the flat non-interest expense compared to the prior year period. Excluding the effects of the non-recurring income and expense items, the efficiency ratio year-to-date was 53.4% compared to 54.8% in 2005.

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• The provision for loan losses was $1.2 million compared to $1.8 for the first six months of 2005. Net charge-offs were $1.2 million compared to $1.7 million. Non-performing loans decreased to $2.9 million, a $457 thousand improvement from year-end 2005 and $1.2 million from June 30, 2005. Non-performing loans as a percentage of loans held for investment were 0.22% compared to 0.25% at December 31, 2005, and 0.32% at June 30, 2005.

• Since year-end 2005, consolidated assets have increased $27.1 million, a 2.8% annualized growth rate, to $1.98 billion compared to $1.95 billion.

• Total stockholders’ equity for the Company was $197.9 million, resulting in a book value per common share outstanding of $17.71 compared to $194.5 million and $17.29 per common share at December 31, 2005.

The Company will host an investor and media teleconference and webcast on Wednesday, July 26, 2006 at 11:00 a.m. To access the teleconference, the toll-free number to call is (877) 407-8031. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visitwww.fcbinc.com and follow the link under theCurrent News Releases section. The Company’s press release and financial summary will be available in this section, as well. Copies of the Company’s second quarter 2006 earnings press release and financial summary will also be made available upon request via fax, email or postal service mail. To request a copy, contact Dave Brown at (800) 425-0839.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $1.98 billion bank holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-nine banking locations and six wealth management offices in the four states of Virginia, West Virginia, North Carolina and Tennessee. First Community Bank, N. A. is also the parent of Stone Capital Management, Inc., a SEC registered investment advisory firm, which offers wealth management and investment advice. The Company also offers wealth management services through its Trust & Financial Services Division, which as of June 30, 2006, managed assets with a market value of $478 million. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ Global Select Market under the symbol “FCBC”. Additional investor information can be found on the Internet atwww.fcbinc.com.

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 Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.

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First Community Bancshares, Inc.
Consolidated Statements of Income
(Dollars in Thousands, Except Share and Per Share Data)(Unaudited)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2006			2005			2006			2005
Interest	Interest and fees on loans held for investment	$	24,506		$	22,192		$	48,431		$	42,920
Income	Interest on securities-taxable		3,224			2,555			6,101			4,851
	Interest on securities-nontaxable		1,816			1,865			3,642			3,814
	Interest on federal funds sold and deposits		479			178			774			393
	Total interest income		30,025			26,790			58,948			51,978
Interest	Interest on deposits		8,326			5,547			15,973			10,509
Expense	Interest on borrowings		3,526			2,721			6,737			5,194
	Total interest expense		11,852			8,268			22,710			15,703
	Net interest income		18,173			18,522			36,238			36,275
	Provision for loan losses		811			1,073			1,219			1,764
	Net interest income after provision for loan losses		17,362			17,449			35,019			34,511
Non-Interest	Wealth management income		732			793			1,415			1,482
Income	Service charges on deposit accounts		2,655			2,623			5,072			4,771
	Other service charges, commissions and fees		711			671			1,451			1,330
	(Loss) gain on sale of securities		(94	)		121			66			143
	Other operating income		1,516			362			2,664			566
	Total non-interest income		5,520			4,570			10,668			8,292
Non-Interest	Salaries and employee benefits		6,782			7,452			14,683			14,770
Expense	Occupancy expense of bank premises		1,011			968			2,051			1,911
	Furniture and equipment expense		858			813			1,708			1,597
	Amortization of intangible assets		144			111			234			221
	Other operating expense		3,793			3,957			7,245			7,298
	Total non-interest expense		12,588			13,301			25,921			25,797
	Income from continuing operations before income taxes		10,294			8,718			19,766			17,006
	Income tax expense continuing operations		3,002			2,494			5,630			4,731
	Income from continuing operations		7,292			6,224			14,136			12,275
	Loss from discontinued operations before tax		—			(39	)		—			(170	)
	Income tax benefit from discontinued operations		—			(15	)		—			(66	)
	Loss from discontinued operations		—			(24	)		—			(104	)
	Net income	$	7,292		$	6,200		$	14,136		$	12,171
	Basic earnings per common share (EPS)	$	0.65		$	0.55		$	1.26		$	1.08
	Diluted earnings per common share (DEPS)	$	0.65		$	0.55		$	1.25		$	1.07
	Weighted Average Shares Outstanding:
	Basic		11,201,052			11,273,724			11,216,940			11,266,648
	Diluted		11,258,581			11,344,480			11,277,032			11,341,847
	For the period:
	Return on average assets		1.47	%		1.31	%		1.45	%		1.31	%
	Return on average equity		14.74	%		13.19	%		14.42	%		13.09	%
	Return on average tangible equity		21.61	%		19.87	%		21.14	%		19.77	%
	Cash dividends per share	$	0.26		$	0.255		$	0.52		$	0.51
	At period end:
	Book value per share	$	17.71		$	16.83		$	17.71		$	16.83
	Market value	$	32.99		$	32.50		$	32.99		$	32.50

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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements
(Dollars in Thousands Except Share and Per Share Data)(Unaudited)

		As of and for the Quarter Ended
		June 30,			March 31,		December 31,			September 30,			June 30,
		2006			2006		2005			2005			2005
Interest	Interest and fees on loans held for investment	$	24,506		$	23,925	$	23,720		$	23,263		$	22,192
Income	Interest on securities-taxable		3,224			2,877		3,322			2,904			2,555
	Interest on securities-nontaxable		1,816			1,826		1,854			1,783			1,865
	Interest on federal funds sold and deposits		479			295		341			343			178
	Total interest income		30,025			28,923		29,237			28,293			26,790
Interest	Interest on deposits		8,326			7,647		7,225			6,296			5,547
Expense	Interest on borrowings		3,526			3,211		3,380			3,276			2,721
	Total interest expense		11,852			10,858		10,605			9,572			8,268
	Net interest income		18,173			18,065		18,632			18,721			18,522
	Provision for loan losses		811			408		882			1,060			1,073
	Net interest income after provision for loan losses		17,362			17,657		17,750			17,661			17,449
Non-Interest	Wealth management income		732			683		716			757			793
Income	Service charges on deposit accounts		2,655			2,417		2,664			2,660			2,623
	Other service charges, commissions and fees		711			740		723			733			671
	(Loss) gain on sale of securities		(94	)		160		74			536			121
	Other operating income		1,516			1,148		4,804			346			362
	Total non-interest income		5,520			5,148		8,981			5,032			4,570
Non-Interest	Salaries and employee benefits		6,782			7,901		7,450			7,260			7,452
Expense	Occupancy expense of bank premises		1,011			1,040		992			1,000			968
	Furniture and equipment expense		858			850		1,154			855			813
	Amortization of intangible assets		144			90		102			112			111
	Prepayment penalties on FHLB advances		—			—		3,794			—			—
	Other operating expense		3,793			3,452		3,184			3,891			3,957
	Total non-interest expense		12,588			13,333		16,676			13,118			13,301
	Income before income taxes-continuing operations		10,294			9,472		10,055			9,575			8,718
	Income tax expense-continuing operations		3,002			2,628		2,819			2,641			2,494
	Income from continuing operations		7,292			6,844		7,236			6,934			6,224
	Loss before tax-discontinued operations		—			—		(27	)		(36	)		(39	)
	Income tax benefit -discontinued operations		—			—		(11	)		(14	)		(15	)
	Loss from discontinued operations		—			—		(16	)		(22	)		(24	)
	Net income	$	7,292		$	6,844	$	7,220		$	6,912		$	6,200
Per	Basic EPS	$	0.65		$	0.61	$	0.64		$	0.61		$	0.55
Share	Diluted EPS	$	0.65		$	0.61	$	0.64		$	0.61		$	0.55
Data	Basic EPS from continuing operations	$	0.65		$	0.61	$	0.64		$	0.61		$	0.55
	Diluted EPS from continuing operations	$	0.65		$	0.61	$	0.64		$	0.61		$	0.55
	Cash dividends per share	$	0.26		$	0.26	$	0.255		$	0.255		$	0.255
	Weighted Average Shares Outstanding:
	Basic		11,201,052			11,233,005		11,268,496			11,275,156			11,273,724
	Diluted		11,258,581			11,311,743		11,340,526			11,342,912			11,344,480
	Actual shares outstanding at period end		11,176,455			11,214,584		11,251,803			11,273,248			11,274,391
	Book Value per share at period end	$	17.71		$	17.49	$	17.29		$	17.15		$	16.83
	Market Value per share at period end	$	32.99		$	31.98	$	31.16		$	29.34		$	32.50

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First Community Bancshares, Inc.
Quarterly Balance Sheets
(Unaudited)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2006			2006			2005			2005			2005
	(Dollars in thousands)
Cash and due from banks	$	43,620		$	46,953		$	46,872		$	48,122		$	43,415
Interest-bearing deposits with banks		29,714			59,005			10,667			47,822			64,488
Securities available for sale		405,761			396,691			404,381			410,057			366,981
Securities held to maturity		20,641			22,789			24,173			24,723			29,854
Loans held for sale		1,293			848			1,274			1,377			1,075
Loans held for investment, net of unearned income		1,318,943			1,329,666			1,331,039			1,321,221			1,296,728
Less allowance for loan losses		14,710			14,797			14,736			14,486			15,984
Net loans		1,304,233			1,314,869			1,316,303			1,306,735			1,280,744
Premises and equipment		35,888			35,636			34,993			35,640			35,796
Other real estate owned		910			867			1,400			1,690			975
Interest receivable		10,179			10,664			10,232			10,175			9,476
Intangible assets		60,883			61,028			61,119			61,287			61,399
Other assets		66,510			39,512			41,069			39,886			41,055
Total Assets	$	1,979,632		$	1,988,862		$	1,952,483		$	1,987,514		$	1,935,258
Deposits:
Demand	$	253,664		$	246,521		$	230,542		$	237,455		$	235,217
Interest-bearing demand		139,861			149,039			144,314			152,331			150,112
Savings		344,436			362,677			355,184			375,027			350,189
Time		675,165			683,853			675,904			681,225			662,381
Total Deposits		1,413,126			1,442,090			1,405,944			1,446,038			1,397,899
Interest, taxes and other liabilities		14,938			15,471			16,153			15,169			15,122
Federal funds purchased		—			—			82,500			—			—
Securities sold under agreements to repurchase		149,507			131,009			124,154			125,739			125,285
FHLB and other indebtedness		204,158			204,192			129,231			207,180			207,231
Total Liabilities		1,781,729			1,792,762			1,757,982			1,794,126			1,745,537
Common stock, $1 par value		11,499			11,499			11,496			11,496			11,496
Additional paid-in capital		108,602			108,629			108,573			108,606			108,639
Retained earnings		91,136			86,755			82,828			78,484			74,444
Treasury stock, at cost		(10,097	)		(8,934	)		(7,625	)		(6,897	)		(6,864	)
Accumulated other comprehensive income (loss)		(3,237	)		(1,849	)		(771	)		1,699			2,006
Total Stockholders’ Equity		197,903			196,100			194,501			193,388			189,721
Total Liabilities and Stockholders’ Equity	$	1,979,632		$	1,988,862		$	1,952,483		$	1,987,514		$	1,935,258

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First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)

	As of and for the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2006			2006			2005			2005			2005
	(Dollars in thousands)
Ratios
Return on average assets		1.47	%		1.42	%		1.44	%		1.40	%		1.31	%
Return on average equity		14.74	%		14.09	%		14.69	%		14.23	%		13.19	%
Return on average tangible equity		21.61	%		20.42	%		21.58	%		21.08	%		19.87	%
Net interest margin		4.28	%		4.32	%		4.27	%		4.33	%		4.51	%
Efficiency Ratio for the quarter (a)		50.49	%		56.38	%		52.65	%		53.23	%		54.57	%
Efficiency Ratio year-to-date (a)		53.39	%		56.38	%		53.83	%		54.23	%		54.75	%
Equity as a percent of total assets at end of period		10.00	%		9.86	%		9.96	%		9.73	%		9.80	%
Average earning assets as a percentage of average total assets		90.55	%		91.39	%		92.12	%		92.09	%		91.95	%
Average loans as a percentage of average deposits		92.87	%		94.23	%		92.34	%		92.94	%		92.48	%
Average Balances
Investments	$	427,085		$	426,953		$	464,713		$	444,720		$	416,279
Loans		1,328,768			1,335,080			1,326,858			1,320,434			1,299,358
Earning Assets		1,797,214			1,790,870			1,826,221			1,804,504			1,739,147
Total Assets		1,984,741			1,959,600			1,982,411			1,959,583			1,891,333
Deposits		1,430,785			1,416,895			1,436,927			1,420,799			1,405,086
Interest-bearing deposits		1,190,489			1,185,265			1,202,972			1,187,958			1,176,779
Borrowings		340,694			330,621			334,917			331,142			284,562
Interest-bearing Liabilities		1,531,183			1,515,886			1,537,889			1,519,100			1,461,341
Equity		198,440			196,998			195,051			192,648			188,532
Tax-equivalent Net Interest Income		19,161			19,059			19,641			19,691			19,535

(a) Excludes securities gains/losses, intangible amortization, foreclosed property expenses, non-recurring income and expense items, and includes tax equivalency adjustment.

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First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)

	As of and for the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2006			2006			2005			2005			2005
	(Dollars in thousands)
Asset Quality Analysis:
Allowance for Loan Losses:
Beginning balance	$	14,797		$	14,736		$	14,486		$	15,984		$	16,543
Provision for Loan Losses		811			408			882			1,060			1,073
Charge-offs		(1,389	)		(715	)		(1,417	)		(3,037	)		(1,638	)
Recoveries		491			368			785			479			398
Net charge-offs		(898	)		(347	)		(632	)		(2,558	)		(1,240	)
Reclassification of allowance for lending-related commitments		—			—			—			—			(392	)
Ending balance	$	14,710		$	14,797		$	14,736		$	14,486		$	15,984
Nonperforming Assets:
Nonaccrual loans	$	2,937		$	2,517		$	3,383		$	5,417		$	4,132
Foreclosed real estate		910			867			1,400			1,690			975
Repossessions		3			8			55			14			29
Loans 90 days or more past due and still accruing		—			—			11			—			—
Nonperforming assets	$	3,850		$	3,392		$	4,849		$	7,121		$	5,136
Asset Quality Ratios:
Nonaccrual loans and leases as a percentage of loans held for investment		0.22	%		0.19	%		0.25	%		0.41	%		0.32	%
Nonperforming assets as a percentage of:
Total assets		0.19	%		0.17	%		0.25	%		0.36	%		0.27	%
Loans held for investment plus foreclosed property		0.29	%		0.25	%		0.36	%		0.54	%		0.40	%
Annualized net charge-offs as a % of average loans held for investment		0.27	%		0.10	%		0.19	%		0.77	%		0.38	%
Allowance for loan losses as a percentage of loans held for investment		1.12	%		1.11	%		1.11	%		1.10	%		1.23	%
Ratio of allowance for loan losses to nonaccrual loans		5.01			5.88			4.36			2.67			3.87

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First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)

	Three Months Ended June 30,
	2006							2005
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
	Balance		(1)		(1)			Balance		(1)		(1)
	(Dollars in thousands)
Earning Assets
Loans
Held for Investment (2)
Taxable	$	1,327,278	$	24,487		7.40	%	$	1,296,274	$	22,175		6.86	%
Tax-Exempt		1,490		30		8.08	%		3,084		28		3.64	%
Total		1,328,768		24,517		7.40	%		1,299,358		22,203		6.85	%
Securities Available for Sale
Taxable		257,838		3,218		5.01	%		243,680		2,548		4.19	%
Tax-Exempt		147,869		2,367		6.42	%		141,932		2,247		6.35	%
Total		405,707		5,585		5.52	%		385,612		4,795		4.99	%
Held to Maturity Securities
Taxable		388		5		5.17	%		401		4		4.00	%
Tax-Exempt		20,990		427		8.16	%		30,266		624		8.27	%
Total		21,378		432		8.11	%		30,667		628		8.21	%
Interest-bearing Deposits with Banks		41,361		479		4.65	%		23,510		180		3.07	%
Total Earning Assets		1,797,214	$	31,013		6.92	%		1,739,147	$	27,806		6.41	%
Other Assets		187,527							152,186
Total	$	1,984,741						$	1,891,333
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	148,502	$	111		0.30	%	$	155,841	$	98		0.25	%
Savings Deposits		355,826		1,761		1.99	%		358,811		836		0.93	%
Time Deposits		686,161		6,454		3.77	%		662,127		4,613		2.79	%
Fed Funds Purchased & Repurchase Agreements		136,522		1,142		3.36	%		125,415		645		2.06	%
FHLB Borrowings & Other Long-term Debt		204,172		2,384		4.68	%		159,147		2,079		5.24	%
Total Interest-bearing Liabilities		1,531,183		11,852		3.10	%		1,461,341		8,271		2.27	%
Noninterest-bearing Demand Deposits		240,296							228,307
Other Liabilities		14,822							13,153
Stockholders’ Equity		198,440							188,532
Total	$	1,984,741						$	1,891,333
Net Interest Income			$	19,161						$	19,535
Net Interest Rate Spread (3)						3.82	%						4.14	%
Net Interest Margin (4)						4.28	%						4.51	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.

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First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)

	Six Months Ended June 30,
	2006							2005
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
	Balance		(1)		(1)			Balance		(1)		(1)
	(Dollars in thousands)
Earning Assets
Loans
Held for Investment (2)
Taxable	$	1,330,375	$	48,391		7.34	%	$	1,276,295	$	42,848		6.77	%
Tax-Exempt		1,531		62		8.17	%		3,751		111		5.97	%
Total		1,331,906		48,453		7.34	%		1,280,046		42,959		6.77	%
Securities Available for Sale
Taxable		254,702		6,091		4.82	%		241,929		4,843		4.04	%
Tax-Exempt		149,991		4,726		6.35	%		142,672		4,580		6.47	%
Total		404,693		10,817		5.39	%		384,601		9,423		4.94	%
Held to Maturity Securities
Taxable		389		10		5.18	%		404		8		3.99	%
Tax-Exempt		21,938		876		8.05	%		31,346		1,288		8.29	%
Total		22,327		886		8.00	%		31,750		1,296		8.23	%
Interest-bearing Deposits with Banks		35,134		774		4.44	%		27,119		393		2.92	%
Total Earning Assets		1,794,060	$	60,930		6.85	%		1,723,516	$	54,071		6.33	%
Other Assets		178,179							151,065
Total	$	1,972,239						$	1,874,581
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	147,490	$	217		0.30	%	$	154,589	$	190		0.25	%
Savings Deposits		357,804		3,393		1.91	%		367,467		1,705		0.94	%
Time Deposits		682,598		12,364		3.65	%		647,489		8,614		2.68	%
Fed Funds Purchased & Repurchase Agreements		133,566		2,103		3.18	%		127,373		1,206		1.91	%
FHLB Borrowings & Other Long-term Debt		202,118		4,633		4.62	%		151,921		3,988		5.29	%
Total Interest-bearing Liabilities		1,523,576		22,710		3.01	%		1,448,839		15,703		2.19	%
Noninterest-bearing Demand Deposits		235,987							224,028
Other Liabilities		14,953							14,260
Stockholders’ Equity		197,723							187,454
Total	$	1,972,239						$	1,874,581
Net Interest Income			$	38,220						$	38,368
Net Interest Rate Spread (3)						3.84	%						4.14	%
Net Interest Margin (4)						4.30	%						4.49	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.

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