First Community Bankshares (FCBC) 8-K First Community Bancshares, Inc. Announces Record Quarterly and Annual Earnings

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
January 23, 2007	CONTACT:David D. Brown
	(276) 326-9000

First Community Bancshares, Inc. Announces Record Quarterly and Annual Earnings

Bluefield, Virginia – First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported that fourth quarter earnings were a record $7.6 million, or $0.68 per diluted share. This represents a 5.6% increase over fourth quarter 2005 earnings of $7.2 million, or $0.64 diluted earnings per share. Return on average assets for the fourth quarter of 2006 was 1.51%, compared to 1.44% for the fourth quarter of 2005. Return on average equity for the fourth quarter of 2006 was 14.41%, compared to 14.69% for the same period in 2005.

Full year 2006 earnings were a record $28.9 million, or $2.57 diluted earnings per share. This represents a 10% increase over 2005 earnings of $26.3 million, or $2.32 diluted earnings per share. Return on average assets for 2006 was 1.46%, compared to 1.37% for 2005. Return on average equity for 2006 was 14.32%, compared to 13.79% for 2005.

Core non-interest expenses continued to improve as salaries and benefits, occupancy, furniture and equipment, and other operating expenses for the most recent quarter were $11.6 million compared to $12.8 million a year ago, a decrease of over 9%. Those costs for the full-year were $49.4 million compared to $51.4 million in 2005. Total salaries and benefits decreased $1.4 million, or 19%, compared to the fourth quarter of 2005 and decreased $2.6 million, or 8.9%, compared to full-year 2005.

Quarterly provision for loan losses was relatively stable compared to the prior year, and the full-year provision was down $1.0 million for the full year 2006, compared with the preceding year. The full-year reduction reflects continued improvement in overall asset quality and improving metrics utilized within the allowance methodology.

In November 2006, the Company completed the acquisition of Investment Planning Consultants, Inc., a wealth management firm located in Bluefield, West Virginia. IPC presently manages over $350 million in customer assets, and brings the total assets under management of the Company’s wealth management group to over $860 million. Additionally, in March the Company expects to open two new branches in the Winston-Salem, North Carolina, area.

Financial Highlights
Fourth Quarter 2006

• Interest income was $30.8 million, an improvement of $1.6 million, or 5.5%, over fourth quarter 2005. The increase was due primarily to increases in benchmark interest rates, which serve as indices for adjustable rate loans.

• Net interest income was down from the fourth quarter of 2005 due to increases in interest expense. Fourth quarter interest expense increased by $2.6 million, or 24% from 2005. On a linked-quarter basis, interest expense increased $703 thousand, or 5.6%. Despite the growing interest costs, tax equivalent net interest margin remained strong at 4.09%, down slightly from 4.20% for the third quarter of 2006, and from 4.27% for the fourth quarter of 2005.

• During the fourth quarter, the Company sold its Rowlesburg, West Virginia, branch resulting in a gain of approximately $333 thousand.

• Core non-interest expenses continued to improve as salaries and benefits, occupancy, furniture and equipment, and other operating expenses were $11.6 million, a decrease of $510 thousand from the previous quarter and $1.2 million from the fourth quarter of 2005. The continued decreases are attributed to the extensive cost savings measures implemented by

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the Company during the past five quarters. Salaries and benefits decreased $118 thousand from last quarter and $1.4 million from fourth quarter of 2005. The fourth quarter efficiency ratio was 48.0% compared to 52.7% in 2005.

• Credit quality remains sound with total delinquencies as a percent of total loans at 0.91% at December 31, 2006, compared to 0.79% at December 31, 2005. The ratio of allowance for loan losses as a percent of loans held for investment was 1.13% compared to 1.11% at December 31, 2005. The fourth quarter 2006 provision for loan losses was $908 thousand compared to $882 thousand in the comparable quarter of 2005. Net charge-offs were $1.3 million compared to $632 thousand for fourth quarter 2005.

• During the fourth quarter, the board of directors declared a dividend to stockholders of twenty-six cents ($0.26) per share. The dividend represents an increase of 2.0% over the $0.255 per share paid in the fourth quarter of 2005. The year 2006 was the 15^th consecutive year of dividend increases to stockholders. Dividends have increased at an average annual rate of over 10% since 1991. The fourth quarter dividend yield was 2.6% based on the December 31, 2006, market value.

Year-End 2006

• Interest income grew $10.5 million, or 9.6%, compared to 2005. The increase was due primarily to increases in benchmark interest rates.

• Interest expense was $12.5 million, or 35%, greater than in 2005. Tax equivalent net interest margin was 4.22%, down 17 basis points from 2005.

• Non-interest income was $21.3 million compared to $22.3 million in 2005. Service charges on deposit accounts increased $147 thousand and other service charges and commissions increased $207 thousand. Included in the other operating income figures were branch sale gains of $1.0 million and $4.4 million in 2006 and 2005, respectively. Other operating income also includes the earnings of approximately $976 thousand from the Company’s second quarter 2006 bank-owned life insurance investment of $25 million. 2006 also included a one-time recovery of $676 thousand related to a 1996 payment systems fraud.

• Compared to prior year, the total of salaries and benefits, occupancy, furniture and equipment, and other operating expenses decreased $1.9 million, or 3.8%, to $49.4 million. The Company’s expense control measures are the major reason behind the lower non-interest expense compared to the prior year. Full-year 2006 efficiency ratio was 51.1% compared to 53.8% in 2005.

• The provision for loan losses was $2.7 million compared to $3.7 million for 2005. Net charge-offs were $2.9 million in 2006 compared to $4.9 million in 2005. Non-performing assets were $4.1 million, compared to $4.8 million at year-end 2005. Non-performing assets as a percentage of loans held for investment and other real estate were 0.32% compared to 0.36% at December 31, 2005.

• Since year-end 2005, consolidated assets have increased $81.2 million, a 4.2% growth rate, to $2.03 billion compared to $1.95 billion.

• Total stockholders’ equity for the Company was $212.7 million, resulting in a book value per common share outstanding of $18.92 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, January 24, 2007, 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 fourth 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, Chief Financial Officer, at (800) 425-0839.

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First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.03 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-eight banking locations and four wealth management offices in the four states of Virginia, West Virginia, North Carolina and Tennessee. First Community Bank, N. A. offers wealth management services through its Trust & Financial Services Division and Investment Planning Consultants, Inc., a registered investment advisory firm, which offers wealth management and investment advice. The Company’s wealth management group managed assets with a market value of $861 million at December 31, 2006. 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						Twelve Months Ended
		December 31,						December 31,
		2006			2005			2006			2005
Interest	Interest and fees on loans held for investment	$	24,451		$	23,720		$	97,460		$	89,903
Income	Interest on securities-taxable		4,353			3,322			13,951			11,077
	Interest on securities-nontaxable		1,852			1,854			7,371			7,451
	Interest on federal funds sold and deposits		182			341			1,244			1,077
	Total interest income		30,838			29,237			120,026			109,508
Interest	Interest on deposits		9,135			7,225			33,868			24,030
Expense	Interest on borrowings		4,052			3,380			14,513			11,850
	Total interest expense		13,187			10,605			48,381			35,880
	Net interest income		17,651			18,632			71,645			73,628
	Provision for loan losses		908			882			2,706			3,706
	Net interest income after provision for loan losses		16,743			17,750			68,939			69,922
Non-Interest	Wealth management income		773			716			2,811			2,956
Income	Service charges on deposit accounts		2,559			2,664			10,242			10,095
	Other service charges, commissions and fees		791			723			2,992			2,785
	Gain on sale of securities		15			74			75			753
	Other operating income		1,419			4,804			5,203			5,716
	Total non-interest income		5,557			8,981			21,323			22,305
Non-Interest	Salaries and employee benefits		6,033			7,451			26,867			29,481
Expense	Occupancy expense of bank premises		978			992			4,068			3,903
	Furniture and equipment expense		887			867			3,466			3,319
	Amortization of intangible assets		88			102			410			435
	Prepayment penalties on FHLB advances		—			3,794			—			3,794
	Other operating expense		3,717			3,470			15,026			14,659
	Total non-interest expense		11,703			16,676			49,837			55,591
	Income from continuing operations before income taxes		10,597			10,055			40,425			36,636
	Income tax expense continuing operations		2,970			2,819			11,477			10,191
	Income from continuing operations		7,627			7,236			28,948			26,445
	Loss from discontinued operations before tax		—			(27	)		—			(233	)
	Income tax benefit from discontinued operations		—			(11	)		—			(91	)
	Loss from discontinued operations		—			(16	)		—			(142	)
	Net income	$	7,627		$	7,220		$	28,948		$	26,303
	Basic earnings per common share (EPS)	$	0.68		$	0.64		$	2.58		$	2.33
	Diluted earnings per common share (DEPS)	$	0.68		$	0.64		$	2.57		$	2.32
	Weighted Average Shares Outstanding:
	Basic		11,211,535			11,268,496			11,204,875			11,269,258
	Diluted		11,297,931			11,340,526			11,279,480			11,341,804
	For the period:
	Return on average assets		1.51	%		1.44	%		1.46	%		1.37	%
	Return on average equity		14.41	%		14.69	%		14.32	%		13.79	%
	Return on average tangible equity		20.57	%		21.58	%		20.77	%		20.53	%
	Cash dividends per share	$	0.26		$	0.255		$	1.04		$	1.02
	At period end:
	Book value per share	$	18.92		$	17.29		$	18.92		$	17.29
	Market value	$	39.56		$	31.16		$	39.56		$	31.16

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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
		December 31,		September 30,			June 30,			March 31,		December 31,
		2006		2006			2006			2006		2005
Interest	Interest and fees on loans held for investment	$	24,451	$	24,578		$	24,506		$	23,925	$	23,720
Income	Interest on securities-taxable		4,353		3,497			3,224			2,877		3,322
	Interest on securities-nontaxable		1,852		1,877			1,816			1,826		1,854
	Interest on federal funds sold and deposits		182		288			479			295		341
	Total interest income		30,838		30,240			30,025			28,923		29,237
Interest	Interest on deposits		9,135		8,760			8,326			7,647		7,225
Expense	Interest on borrowings		4,052		3,724			3,526			3,211		3,380
	Total interest expense		13,187		12,484			11,852			10,858		10,605
	Net interest income		17,651		17,756			18,173			18,065		18,632
	Provision for loan losses		908		579			811			408		882
	Net interest income after provision for loan losses		16,743		17,177			17,362			17,657		17,750
Non-Int	Wealth management income		773		623			732			683		716
Income	Service charges on deposit accounts		2,559		2,611			2,655			2,417		2,664
	Other service charges, commissions and fees		791		750			711			740		723
	(Loss) gain on sale of securities		15		(6	)		(94	)		160		74
	Other operating income		1,419		1,120			1,516			1,148		4,804
	Total non-interest income		5,557		5,098			5,520			5,148		8,981
Non-Int	Salaries and employee benefits		6,033		6,151			6,782			7,901		7,451
Expense	Occupancy expense of bank premises		978		1,039			1,011			1,040		992
	Furniture and equipment expense		887		871			858			850		867
	Amortization of intangible assets		88		88			144			90		102
	Prepayment penalties on FHLB advances		—		—			—			—		3,794
	Other operating expense		3,717		4,064			3,793			3,452		3,470
	Total non-interest expense		11,703		12,213			12,588			13,333		16,676
	Income before income taxes-continuing operations		10,597		10,062			10,294			9,472		10,055
	Income tax expense-continuing operations		2,970		2,877			3,002			2,628		2,819
	Income from continuing operations		7,627		7,185			7,292			6,844		7,236
	Loss before tax-discontinued operations		—		—			—			—		(27	)
	Income tax benefit -discontinued operations		—		—			—			—		(11	)
	Loss from discontinued operations		—		—			—			—		(16	)
	Net income	$	7,627	$	7,185		$	7,292		$	6,844	$	7,220
Per	Basic EPS	$	0.68	$	0.64		$	0.65		$	0.61	$	0.64
Share	Diluted EPS	$	0.68	$	0.64		$	0.65		$	0.61	$	0.64
Data	Basic EPS from continuing operations	$	0.68	$	0.64		$	0.65		$	0.61	$	0.64
	Diluted EPS from continuing operations	$	0.68	$	0.64		$	0.65		$	0.61	$	0.64
	Cash dividends per share	$	0.26	$	0.26		$	0.26		$	0.26	$	0.255
	Weighted Average Shares Outstanding:
	Basic		11,211,535		11,174,479			11,201,052			11,233,005		11,268,496
	Diluted		11,297,931		11,245,073			11,258,581			11,311,743		11,340,526
	Actual shares oustanding at period end		11,245,742		11,183,668			11,176,455			11,214,584		11,251,803
	Book Value per share at period end	$	18.92	$	18.40		$	17.71		$	17.49	$	17.29
	Market Value per share at period end	$	39.56	$	33.37		$	32.99		$	31.98	$	31.16

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

	December 31,			September 30,			June 30,			March 31,			December 31,
	2006			2006			2006			2006			2005
	(Dollars in thousands)
Cash and due from banks	$	47,909		$	38,961		$	43,620		$	46,953		$	46,872
Interest-bearing deposits with banks		9,850			13,473			29,714			59,005			10,667
Securities available for sale		508,370			475,528			405,761			396,691			404,381
Securities held to maturity		20,019			20,250			20,641			22,789			24,173
Loans held for sale		781			1,046			1,293			848			1,274
Loans held for investment, net of unearned income		1,284,863			1,299,220			1,318,943			1,329,666			1,331,039
Less allowance for loan losses		14,549			14,946			14,710			14,797			14,736
Net loans		1,270,314			1,284,274			1,304,233			1,314,869			1,316,303
Premises and equipment		36,889			35,879			35,888			35,636			34,993
Other real estate owned		258			753			910			867			1,400
Interest receivable		12,141			11,435			10,179			10,664			10,232
Intangible assets		62,196			60,796			60,883			61,028			61,119
Other assets		64,971			65,174			66,510			39,512			41,069
TotalAssets	$	2,033,698		$	2,007,569		$	1,979,632		$	1,988,862		$	1,952,483
Deposits:
Demand	$	244,771		$	245,097		$	253,664		$	246,521		$	230,542
Interest-bearing demand		140,578			145,519			139,861			149,039			144,314
Savings		317,678			327,120			344,436			362,677			355,184
Time		695,058			681,719			675,165			683,853			675,904
Total Deposits		1,398,085			1,399,455			1,413,126			1,442,090			1,405,944
Interest, taxes and other liabilities		16,327			15,994			14,938			15,471			16,153
Federal funds purchased		7,700			15,500			—			—			82,500
Securities sold under agreements to repurchase		201,185			172,711			149,507			131,009			124,154
FHLB and other indebtedness		197,671			198,127			204,158			204,192			129,231
Total Liabilities		1,820,968			1,801,787			1,781,729			1,792,762			1,757,982
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,496
Additional paid-in capital		108,806			108,605			108,602			108,629			108,573
Retained earnings		100,117			95,414			91,136			86,755			82,828
Treasury stock, at cost		(7,924	)		(9,866	)		(10,097	)		(8,934	)		(7,625	)
Accumulated other comprehensive income (loss)		232			130			(3,237	)		(1,849	)		(771	)
Total Stockholders’ Equity		212,730			205,782			197,903			196,100			194,501
Total Liabilities and Stockholders’ Equity	$	2,033,698		$	2,007,569		$	1,979,632		$	1,988,862		$	1,952,483

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First Community Bancshares, Inc.

Selected Financial Information

(Unaudited)

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2006			2006			2006			2006			2005
	(Dollars in thousands)
Ratios
Return on average assets		1.51	%		1.45	%		1.47	%		1.42	%		1.44	%
Return on average equity		14.41	%		14.05	%		14.74	%		14.09	%		14.69	%
Return on average tangible equity		20.57	%		20.29	%		21.61	%		20.42	%		21.58	%
Net interest margin		4.09	%		4.20	%		4.28	%		4.32	%		4.27	%
Efficiency ratio for the quarter (a)		48.02	%		49.44	%		50.49	%		56.38	%		52.65	%
Efficiency ratio year-to-date (a)		51.05	%		52.07	%		53.39	%		56.38	%		53.83	%
Equity as a percent of total assets at end of period		10.46	%		10.25	%		10.00	%		9.86	%		9.96	%
Average earning assets as a percentage of average total assets		90.32	%		90.06	%		90.55	%		91.39	%		92.12	%
Average loans as a percentage of average deposits		92.75	%		93.31	%		92.87	%		94.23	%		92.34	%
Average Balances
Investments	$	501,042		$	443,680		$	427,085		$	426,953		$	464,713
Loans		1,296,754			1,305,839			1,328,768			1,335,080			1,326,858
Earning assets		1,812,181			1,774,277			1,797,214			1,790,870			1,826,221
Total assets		2,006,377			1,970,003			1,984,741			1,959,600			1,982,411
Deposits		1,398,156			1,399,435			1,430,785			1,416,895			1,436,927
Interest-bearing deposits		1,159,857			1,158,907			1,190,489			1,185,265			1,202,972
Borrowings		381,845			351,909			340,694			330,621			334,917
Interest-bearing liabilities		1,541,702			1,510,816			1,531,183			1,515,886			1,537,889
Equity		209,985			202,922			198,440			196,998			195,051
Tax equivalent net interest income		18,660			18,775			19,161			19,059			19,641

(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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2006			2006			2006			2006			2005
	(Dollars in thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	14,946		$	14,710		$	14,797		$	14,736		$	14,486
Provision for Loan Losses		908			579			811			408			882
Charge-offs		(1,607	)		(832	)		(1,389	)		(715	)		(1,417	)
Recoveries		302			489			491			368			785
Net charge-offs		(1,305	)		(343	)		(898	)		(347	)		(632	)
Ending balance	$	14,549		$	14,946		$	14,710		$	14,797		$	14,736
Summary of Asset Quality
Nonaccrual loans	$	3,813		$	3,657		$	2,937		$	2,517		$	3,383
Loans 90 days or more past due and still accruing		—			—			—			—			11
Total non-performing loans		3,813			3,657			2,937			2,517			3,394
Other real estate owned		258			753			910			867			1,400
Total non-performing assets	$	4,071		$	4,410		$	3,847		$	3,384		$	4,794
Restructured loans	$	272		$	281		$	289		$	297		$	302
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.30	%		0.28	%		0.22	%		0.19	%		0.25	%
Non-performing assets as a percentage of:
Total assets		0.20	%		0.22	%		0.19	%		0.17	%		0.25	%
Loans held for investment plus other real estate owned		0.32	%		0.34	%		0.29	%		0.25	%		0.36	%
Annualized net charge-offs as a percentage of average loans held for investment		0.40	%		0.10	%		0.27	%		0.11	%		0.19	%
Allowance for loan losses as a percentage of loans held for investment		1.13	%		1.15	%		1.12	%		1.11	%		1.11	%
Ratio of allowance for loan losses to nonaccrual loans		3.82			4.09			5.01			5.88			4.36

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First Community Bancshares, Inc.

Consolidated Average Balance Sheets, Yields, and Rates

(Unaudited)

	Three Months Ended December 31,
	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	$	1,295,157	$	24,433		7.48	%	$	1,325,231	$	23,699		7.09	%
Tax Exempt		1,597		29		7.20	%		1,627		33		8.04	%
Total		1,296,754		24,462		7.48	%		1,326,858		23,732		7.10	%
Securities Available for Sale
Taxable		325,403		4,348		5.30	%		290,546		3,318		4.53	%
Tax Exempt		155,466		2,447		6.24	%		149,707		2,358		6.25	%
Total		480,869		6,795		5.61	%		440,253		5,676		5.11	%
Held to Maturity Securities
Taxable		382		5		5.19	%		394		4		4.03	%
Tax Exempt		19,791		403		8.08	%		24,066		494		8.14	%
Total		20,173		408		8.02	%		24,460		498		8.08	%
Interest-bearing Deposits with Banks		14,385		182		5.02	%		34,650		341		3.90	%
Total Earning Assets		1,812,181	$	31,847		6.97	%		1,826,221	$	30,247		6.57	%
Other Assets		194,196							156,190
Total	$	2,006,377						$	1,982,411
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	146,018	$	124		0.34	%	$	149,318	$	106		0.28	%
Savings Deposits		323,650		1,691		2.07	%		371,081		1,496		1.60	%
Time Deposits		690,189		7,320		4.21	%		682,573		5,624		3.27	%
Fed Funds Purchased & Repurchase Agreements		183,847		1,701		3.67	%		135,483		885		2.59	%
FHLB Borrowings & Other Long-term Debt		197,998		2,351		4.71	%		199,434		2,495		4.96	%
Total Interest-bearing Liabilities		1,541,702		13,187		3.39	%		1,537,889		10,606		2.74	%
Noninterest-bearing Demand Deposits		238,299							233,955
Other Liabilities		16,391							15,516
Stockholders’ Equity		209,985							195,051
Total	$	2,006,377						$	1,982,411
Net Interest Income			$	18,660						$	19,641
Net Interest Rate Spread (3)						3.58	%						3.83	%
Net Interest Margin (4)						4.09	%						4.27	%

(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)

	Year Ended December 31,
	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	$	1,314,976	$	97,386		7.41	%	$	1,299,328	$	89,788		6.91	%
Tax Exempt		1,499		114		7.61	%		2,692		177		6.58	%
Total		1,316,475		97,500		7.41	%		1,302,020		89,965		6.91	%
Securities Available for Sale
Taxable		276,142		13,929		5.04	%		262,715		11,062		4.21	%
Tax Exempt		152,437		9,655		6.33	%		144,242		9,193		6.37	%
Total		428,579		23,584		5.50	%		406,957		20,255		4.98	%
Held to Maturity Securities
Taxable		386		22		5.70	%		399		15		3.76	%
Tax Exempt		20,912		1,686		8.06	%		28,336		2,269		8.01	%
Total		21,298		1,708		8.02	%		28,735		2,284		7.95	%
Interest-bearing Deposits with Banks		27,289		1,244		4.56	%		32,100		1,077		3.36	%
Total Earning Assets		1,793,641	$	124,036		6.92	%		1,769,812	$	113,581		6.42	%
Other Assets		186,639							153,410
Total	$	1,980,280						$	1,923,222
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	146,248	$	462		0.32	%	$	152,774	$	401		0.26	%
Savings Deposits		343,854		6,857		1.99	%		368,339		4,309		1.17	%
Time Deposits		683,418		26,549		3.88	%		661,498		19,321		2.92	%
Fed Funds Purchased & Repurchase Agreements		150,839		5,079		3.37	%		128,551		2,782		2.16	%
FHLB Borrowings & Other Long-term Debt		200,570		9,434		4.70	%		177,832		9,068		5.10	%
Total Interest-bearing Liabilities		1,524,929		48,381		3.17	%		1,488,994		35,881		2.41	%
Noninterest-bearing Demand Deposits		237,714							228,781
Other Liabilities		15,513							14,772
Stockholders’ Equity		202,124							190,675
Total	$	1,980,280						$	1,923,222
Net Interest Income			$	75,655						$	77,700
Net Interest Rate Spread (3)						3.75	%						4.01	%
Net Interest Margin (4)						4.22	%						4.39	%

(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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