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

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
October 24, 2006	CONTACT:David D. Brown
	(276) 326-9000

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

Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported record third quarter earnings of $7.2 million, or $0.64 diluted earnings per share. This represents a 3.9% increase over third quarter 2005 earnings of $6.9 million, or $0.61 diluted earnings per share. Return on average assets for the third quarter of 2006 was 1.45%, compared to 1.40% for the third quarter of 2005. Return on average equity for the third quarter of 2006 was 14.05%, compared to 14.23% for the same period in 2005.

Year-to-date earnings were a record $21.3 million, or $1.89 diluted earnings per share, a 12% increase over the same period of 2005. Return on average assets for the period was 1.45% and return on average equity was 14.29% for the period.

The Company also crossed a milestone in its growth objectives by finishing the quarter with assets of $2.01 billion. As part of its continued focus on growth in core deposits, the Company has begun construction of four new branches. Early in 2007, two new branches will open in the Winston-Salem, North Carolina, area as well as new branches Beckley and Summersville, West Virginia. By the spring of 2007, the Company will open another branch in the Richmond, Virginia, area.

Operating costs continue to improve, with a 6.9% reduction in total non-interest expense compared to third quarter of 2005. Total non-interest expense for the most recent quarter was $12.2 million compared to $13.1 million a year ago. Total salaries and benefits decreased $1.1 million compared to the third quarter of 2005 and decreased $631 thousand compared to second quarter 2006.

Provision for loan losses was down $481 thousand and $1.0 million for the three- and nine-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
Third Quarter 2006

• Interest income was $30.2 million, an improvement of $1.9 million, or 6.9%, over third quarter 2005. The increase was due primarily to increases in benchmark interest rates.

• Net interest income was down from the third quarter of 2005 due to increases in interest expense. Third quarter interest expense increased by $2.9 million, or 30% from 2005. On a linked-quarter basis, interest expense increased $632 thousand, or 5.3%. Despite the growing interest costs, tax-equivalent net interest margin remained strong at 4.20%, down slightly from 4.28% for the second quarter of 2006, and from 4.33% for the third quarter of 2005.

• Non-interest expense for the third quarter was $12.2 million, a decrease of $375 thousand from the previous quarter and $905 thousand from third quarter of 2005. The decreases can be attributed to the extensive cost savings measures implemented by the Company during the past four quarters. Salaries and benefits decreased $631 thousand from last quarter and $1.1 million from third quarter of 2005. Third quarter efficiency ratio was 49.4% compared to 53.2% in 2005.

• Credit quality remains sound with total delinquencies as a percent of total loans at 0.67% at September 30, 2006, compared to 0.81% at September 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 1.15% compared to 1.10% at September 30, 2005. The provision for loan

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losses was $579 thousand compared to $1.1 million. Net charge-offs were $343 thousand compared to $2.6 million for third quarter 2005. Net charge-offs for the third quarter of 2005 included the $2.2 million charge-down to net realizable value of a single problem loan.

• During the third 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 third 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 third quarter dividend yield was 3.1% based on the quarter-end market value.

Year-to-Date 2006

• Interest income grew $8.9 million, or 11%, compared to the same period of 2005. The increase was due primarily to increases in benchmark interest rates.

• Net interest income was down somewhat from 2005 due to increases in interest expense. Year-to-date interest expense was $9.9 million, or 39%, greater than 2005. Year-to-date tax-equivalent net interest margin was 4.26%, down 17 basis points from the same period in 2005.

• Non-interest income was $15.8 million, an increase over prior year of $2.4 million, or 18%. The bulk of the increase was due to gains realized from a second quarter branch sale and a first quarter recovery from a previous fraud loss. Service charges on deposit accounts increased $252 thousand and other service charges and commissions increased $138 thousand.

• Compared to prior year, non-interest expense decreased $781 thousand to $38.1 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 52.1% compared to 54.2% in 2005.

• The provision for loan losses was $1.8 million compared to $2.8 million for the first nine months of 2005. Net charge-offs were $1.6 million compared to $4.3 million. Non-performing loans were $3.7 million, compared to $3.4 million at year-end 2005, and $5.4 million at September 30, 2005. Non-performing loans as a percentage of loans held for investment were 0.28% compared to 0.25% at December 31, 2005, and 0.41% at September 30, 2005.

• Since year-end 2005, consolidated assets have increased $55.1 million, a 3.8% annualized growth rate, to $2.01 billion compared to $1.95 billion.

• Total stockholders’ equity for the Company was $205.8 million, resulting in a book value per common share outstanding of $18.40 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, October 25, 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 third 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.

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First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.01 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 four 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 offers wealth management services through its Trust & Financial Services Division, which as of September 30, 2006, managed assets with a market value of $488 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						Nine Months Ended
		September 30,						September 30,
		2006			2005			2006			2005
Interest Income	Interest and fees on loans held for investment	$	24,578		$	23,263		$	73,009		$	66,183
	Interest on securities-taxable		3,734			2,904			9,835			7,755
	Interest on securities-nontaxable		1,877			1,783			5,519			5,597
	Interest on federal funds sold and deposits		51			343			825			737
	Total interest income		30,240			28,293			89,188			80,272
Interest Expense	Interest on deposits		8,760			6,296			24,733			16,805
	Interest on borrowings		3,724			3,276			10,461			8,471
	Total interest expense		12,484			9,572			35,194			25,276
	Net interest income		17,756			18,721			53,994			54,996
	Provision for loan losses		579			1,060			1,798			2,824
	Net interest income after provision for loan losses		17,177			17,661			52,196			52,172
Non-Interest Income	Wealth management income		623			757			2,038			2,239
	Service charges on deposit accounts		2,611			2,660			7,683			7,431
	Other service charges, commissions and fees		750			733			2,201			2,063
	(Loss) gain on sale of securities		(6	)		536			60			679
	Other operating income		1,120			346			3,784			912
	Total non-interest income		5,098			5,032			15,766			13,324
Non-Interest Expense	Salaries and employee benefits		6,151			7,260			20,834			22,030
	Occupancy expense of bank premises		1,039			1,000			3,090			2,911
	Furniture and equipment expense		871			855			2,579			2,452
	Amortization of intangible assets		88			112			322			333
	Other operating expense		4,064			3,891			11,309			11,189
	Total non-interest expense		12,213			13,118			38,134			38,915
	Income from continuing operations before income taxes		10,062			9,575			29,828			26,581
	Income tax expense continuing operations		2,877			2,641			8,507			7,372
	Income from continuing operations		7,185			6,934			21,321			19,209
	Loss from discontinued operations before tax		—			(36	)		—			(206	)
	Income tax benefit from discontinued operations		—			(14	)		—			(80	)
	Loss from discontinued operations		—			(22	)		—			(126	)
	Net income	$	7,185		$	6,912		$	21,321		$	19,083
	Basic earnings per common share (EPS)	$	0.64		$	0.61		$	1.90		$	1.69
	Diluted earnings per common share (DEPS)	$	0.64		$	0.61		$	1.89		$	1.68
	Weighted Average Shares Outstanding:
	Basic		11,174,479			11,275,156			11,202,631			11,269,515
	Diluted		11,245,073			11,342,912			11,273,293			11,342,233
	For the period:
	Return on average assets		1.45	%		1.40	%		1.45	%		1.34	%
	Return on average equity		14.05	%		14.23	%		14.29	%		13.49	%
	Return on average tangible equity		20.29	%		21.17	%		20.85	%		20.25	%
	Cash dividends per share	$	0.26		$	0.255		$	0.78		$	0.765
	At period end:
	Book value per share	$	18.40		$	17.15		$	18.40		$	17.15
	Market value	$	33.37		$	29.34		$	33.37		$	29.34

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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
		September 30,			June 30,			March 31,		December 31,			September 30,
		2006			2006			2006		2005			2005
Interest Income	Interest and fees on loans held for investment	$	24,578		$	24,506		$	23,925	$	23,720		$	23,263
	Interest on securities-taxable		3,734			3,224			2,877		3,322			2,904
	Interest on securities-nontaxable		1,877			1,816			1,826		1,854			1,783
	Interest on federal funds sold and deposits		51			479			295		341			343
	Total interest income		30,240			30,025			28,923		29,237			28,293
Interest Expense	Interest on deposits		8,760			8,326			7,647		7,225			6,296
	Interest on borrowings		3,724			3,526			3,211		3,380			3,276
	Total interest expense		12,484			11,852			10,858		10,605			9,572
	Net interest income		17,756			18,173			18,065		18,632			18,721
	Provision for loan losses		579			811			408		882			1,060
	Net interest income after provision for loan losses		17,177			17,362			17,657		17,750			17,661
Non-Int Income	Wealth management income		623			732			683		716			757
	Service charges on deposit accounts		2,611			2,655			2,417		2,664			2,660
	Other service charges, commissions and fees		750			711			740		723			733
	(Loss) gain on sale of securities		(6	)		(94	)		160		74			536
	Other operating income		1,120			1,516			1,148		4,804			346
	Total non-interest income		5,098			5,520			5,148		8,981			5,032
Non-Int Expense	Salaries and employee benefits		6,151			6,782			7,901		7,450			7,260
	Occupancy expense of bank premises		1,039			1,011			1,040		992			1,000
	Furniture and equipment expense		871			858			850		1,154			855
	Amortization of intangible assets		88			144			90		102			112
	Prepayment penalties on FHLB advances		—			—			—		3,794			—
	Other operating expense		4,064			3,793			3,452		3,184			3,891
	Total non-interest expense		12,213			12,588			13,333		16,676			13,118
	Income before income taxes-continuing operations		10,062			10,294			9,472		10,055			9,575
	Income tax expense-continuing operations		2,877			3,002			2,628		2,819			2,641
	Income from continuing operations		7,185			7,292			6,844		7,236			6,934
	Loss before tax-discontinued operations		—			—			—		(27	)		(36	)
	Income tax benefit -discontinued operations		—			—			—		(11	)		(14	)
	Loss from discontinued operations		—			—			—		(16	)		(22	)
	Net income	$	7,185		$	7,292		$	6,844	$	7,220		$	6,912
Per Share Data	Basic EPS	$	0.64		$	0.65		$	0.61	$	0.64		$	0.61
	Diluted EPS	$	0.64		$	0.65		$	0.61	$	0.64		$	0.61
	Basic EPS from continuing operations	$	0.64		$	0.65		$	0.61	$	0.64		$	0.61
	Diluted EPS from continuing operations	$	0.64		$	0.65		$	0.61	$	0.64		$	0.61
	Cash dividends per share	$	0.26		$	0.26		$	0.26	$	0.255		$	0.255
	Weighted Average Shares Outstanding:
	Basic		11,174,479			11,201,052			11,233,005		11,268,496			11,275,156
	Diluted		11,245,073			11,258,581			11,311,743		11,340,526			11,342,912
	Actual shares oustanding at period end		11,183,668			11,176,455			11,214,584		11,251,803			11,273,248
	Book Value per share at period end	$	18.40		$	17.71		$	17.49	$	17.29		$	17.15
	Market Value per share at period end	$	33.37		$	32.99		$	31.98	$	31.16		$	29.34

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

	September 30,			June 30,			March 31,			December 31,			September 30,
	2006			2006			2006			2005			2005
				(Dollars in thousands)
Cash and due from banks	$	38,961		$	43,620		$	46,953		$	46,872		$	48,122
Interest-bearing deposits with banks		13,473			29,714			59,005			10,667			47,822
Securities available for sale		475,528			405,761			396,691			404,381			410,057
Securities held to maturity		20,250			20,641			22,789			24,173			24,723
Loans held for sale		1,046			1,293			848			1,274			1,377
Loans held for investment, net of unearned income		1,299,220			1,318,943			1,329,666			1,331,039			1,321,221
Less allowance for loan losses		14,946			14,710			14,797			14,736			14,486
Net loans		1,284,274			1,304,233			1,314,869			1,316,303			1,306,735
Premises and equipment		35,879			35,888			35,636			34,993			35,640
Other real estate owned		753			910			867			1,400			1,690
Interest receivable		11,435			10,179			10,664			10,232			10,175
Intangible assets		60,796			60,883			61,028			61,119			61,287
Other assets		65,174			66,510			39,512			41,069			39,886
Total Assets	$	2,007,569		$	1,979,632		$	1,988,862		$	1,952,483		$	1,987,514
Deposits:
Demand	$	245,097		$	253,664		$	246,521		$	230,542		$	237,455
Interest-bearing demand		145,519			139,861			149,039			144,314			152,331
Savings		327,120			344,436			362,677			355,184			375,027
Time		681,719			675,165			683,853			675,904			681,225
Total Deposits		1,399,455			1,413,126			1,442,090			1,405,944			1,446,038
Interest, taxes and other liabilities		15,994			14,938			15,471			16,153			15,169
Federal funds purchased		15,500			—			—			82,500			—
Securities sold under agreements to repurchase		172,711			149,507			131,009			124,154			125,739
FHLB and other indebtedness		198,127			204,158			204,192			129,231			207,180
Total Liabilities		1,801,787			1,781,729			1,792,762			1,757,982			1,794,126
Common stock, $1 par value		11,499			11,499			11,499			11,496			11,496
Additional paid-in capital		108,605			108,602			108,629			108,573			108,606
Retained earnings		95,414			91,136			86,755			82,828			78,484
Treasury stock, at cost		(9,866	)		(10,097	)		(8,934	)		(7,625	)		(6,897	)
Accumulated other comprehensive income (loss)		130			(3,237	)		(1,849	)		(771	)		1,699
Total Stockholders’ Equity		205,782			197,903			196,100			194,501			193,388
Total Liabilities and Stockholders’ Equity	$	2,007,569		$	1,979,632		$	1,988,862		$	1,952,483		$	1,987,514

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

	As of and for the Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2006			2006			2006			2005			2005
		(Dollars in thousands)
Ratios
Return on average assets		1.45	%		1.47	%		1.42	%		1.44	%		1.40	%
Return on average equity		14.05	%		14.74	%		14.09	%		14.69	%		14.23	%
Return on average tangible equity		20.29	%		21.61	%		20.42	%		21.58	%		21.08	%
Net interest margin		4.20	%		4.28	%		4.32	%		4.27	%		4.33	%
Efficiency ratio for the quarter (a)		49.44	%		50.49	%		56.38	%		52.65	%		53.23	%
Efficiency ratio year-to-date (a)		52.07	%		53.39	%		56.38	%		53.83	%		54.23	%
Equity as a percent of total assets at end of period		10.25	%		10.00	%		9.86	%		9.96	%		9.73	%
Average earning assets as a percentage of average total assets		90.06	%		90.55	%		91.39	%		92.12	%		92.09	%
Average loans as a percentage of average deposits		93.31	%		92.87	%		94.23	%		92.34	%		92.94	%
Average Balances
Investments	$	443,680		$	427,085		$	426,953		$	464,713		$	444,720
Loans		1,305,839			1,328,768			1,335,080			1,326,858			1,320,434
Earning assets		1,774,277			1,797,214			1,790,870			1,826,221			1,804,504
Total assets		1,970,003			1,984,741			1,959,600			1,982,411			1,959,583
Deposits		1,399,435			1,430,785			1,416,895			1,436,927			1,420,799
Interest-bearing deposits		1,158,907			1,190,489			1,185,265			1,202,972			1,187,958
Borrowings		351,909			340,694			330,621			334,917			331,142
Interest-bearing liabilities		1,510,816			1,531,183			1,515,886			1,537,889			1,519,100
Equity		202,922			198,440			196,998			195,051			192,648
Tax-equivalent net interest income		18,775			19,161			19,059			19,641			19,691

(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
	September 30,			June 30,			March 31,			December 31,			September 30,
	2006			2006			2006			2005			2005
				(Dollars in thousands)
Asset Quality Analysis:
Allowance for Loan Losses:
Beginning balance	$	14,710		$	14,797		$	14,736		$	14,486		$	15,984
Provision for Loan Losses		579			811			408			882			1,060
Charge-offs		(832	)		(1,389	)		(715	)		(1,417	)		(3,037	)
Recoveries		489			491			368			785			479
Net charge-offs		(343	)		(898	)		(347	)		(632	)		(2,558	)
Ending balance	$	14,946		$	14,710		$	14,797		$	14,736		$	14,486
Nonperforming Assets:
Nonaccrual loans	$	3,657		$	2,937		$	2,517		$	3,383		$	5,417
Foreclosed real estate		753			910			867			1,400			1,690
Repossessions		26			3			8			55			14
Loans 90 days or more past due and still accruing		—			—			—			11			—
Nonperforming assets	$	4,436		$	3,850		$	3,392		$	4,849		$	7,121
Asset Quality Ratios:
Nonaccrual loans and leases as a percentage of loans held for investment		0.28	%		0.22	%		0.19	%		0.25	%		0.41	%
Nonperforming assets as a percentage of:
Total assets		0.22	%		0.19	%		0.17	%		0.25	%		0.36	%
Loans held for investment plus foreclosed property		0.34	%		0.29	%		0.25	%		0.36	%		0.54	%
Annualized net charge-offs as a % of average loans held for investment		0.11	%		0.27	%		0.10	%		0.19	%		0.77	%
Allowance for loan losses as a percentage of loans held for investment		1.15	%		1.12	%		1.11	%		1.11	%		1.10	%
Ratio of allowance for loan losses to nonaccrual loans		4.09			5.01			5.88			4.36			2.67

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

	Three Months Ended September 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	$	1,304,500	$	24,562		7.47	%	$	1,318,759	$	23,241		6.99	%
Tax-Exempt		1,339		24		7.11	%		1,675		33		7.84	%
Total		1,305,839		24,586		7.47	%		1,320,434		23,274		6.99	%
Securities Available for Sale
Taxable		269,061		3,490		5.15	%		275,775		2,901		4.17	%
Tax-Exempt		154,221		2,482		6.39	%		141,865		2,255		6.31	%
Total		423,282		5,972		5.60	%		417,640		5,156		4.90	%
Held to Maturity Securities
Taxable		385		6		6.18	%		398		3		2.99	%
Tax-Exempt		20,013		406		8.05	%		26,682		487		7.23	%
Total		20,398		412		8.01	%		27,080		490		7.17	%
Interest-bearing Deposits with Banks		24,758		289		4.63	%		39,350		343		3.46	%
Total Earning Assets		1,774,277	$	31,259		6.99	%		1,804,504	$	29,263		6.43	%
Other Assets		195,726							155,079
Total	$	1,970,003						$	1,959,583
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	144,034	$	120		0.33	%	$	152,658	$	105		0.27	%
Savings Deposits		336,611		1,773		2.09	%		367,314		1,108		1.20	%
Time Deposits		678,262		6,867		4.02	%		667,986		5,083		3.02	%
Fed Funds Purchased & Repurchase Agreements		151,813		1,276		3.33	%		123,936		691		2.21	%
FHLB Borrowings & Other Long-term Debt		200,096		2,448		4.85	%		207,206		2,585		4.95	%
Total Interest-bearing Liabilities		1,510,816		12,484		3.28	%		1,519,100		9,572		2.50	%
Noninterest-bearing Demand Deposits		240,528							232,841
Other Liabilities		15,737							14,994
Stockholders’ Equity		202,922							192,648
Total	$	1,970,003						$	1,959,583
Net Interest Income			$	18,775						$	19,691
Net Interest Rate Spread (3)						3.71	%						3.93	%
Net Interest Margin (4)						4.20	%						4.33	%

(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)

	Nine Months Ended September 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	$	1,321,656	$	72,953		7.38	%	$	1,290,606	$	66,089		6.85	%
Tax-Exempt		1,466		85		7.75	%		3,052		144		6.31	%
Total		1,323,122		73,038		7.38	%		1,293,658		66,233		6.85	%
Securities Available for Sale
Taxable		259,540		9,581		4.94	%		253,335		7,744		4.09	%
Tax-Exempt		151,417		7,208		6.36	%		142,400		6,835		6.42	%
Total		410,957		16,789		5.46	%		395,735		14,579		4.93	%
Held to Maturity Securities
Taxable		388		17		5.86	%		402		11		3.66	%
Tax-Exempt		21,289		1,283		8.06	%		29,774		1,775		7.97	%
Total		21,677		1,300		8.02	%		30,176		1,786		7.91	%
Interest-bearing Deposits with Banks		31,637		1,063		4.49	%		31,241		736		3.15	%
Total Earning Assets		1,787,393	$	92,190		6.90	%		1,750,810	$	83,334		6.36	%
Other Assets		184,092							152,466
Total	$	1,971,485						$	1,903,276
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	146,325	$	338		0.31	%	$	153,938	$	295		0.26	%
Savings Deposits		350,662		5,166		1.97	%		367,415		2,813		1.02	%
Time Deposits		681,136		19,229		3.77	%		654,397		13,697		2.80	%
Fed Funds Purchased & Repurchase Agreements		139,716		3,378		3.23	%		126,215		1,897		2.01	%
FHLB Borrowings & Other Long-term Debt		201,437		7,083		4.70	%		170,552		6,573		5.15	%
Total Interest-bearing Liabilities		1,519,276		35,194		3.10	%		1,472,517		25,275		2.29	%
Noninterest-bearing Demand Deposits		237,517							227,038
Other Liabilities		15,217							14,522
Stockholders’ Equity		199,475							189,199
Total	$	1,971,485						$	1,903,276
Net Interest Income			$	56,996						$	58,059
Net Interest Rate Spread (3)						3.80	%						4.07	%
Net Interest Margin (4)						4.26	%						4.43	%

(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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