First Community Bankshares (FCBC) 8-K First Community Bancshares, Inc. Announces Third Quarter Results

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:
October 29, 2008 FOR MORE INFORMATION,
CONTACT:     David D. Brown
(276) 326-9000   

First Community Bancshares, Inc. Announces Third Quarter Results

Bluefield, Virginia — First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported third quarter earnings of $4.55 million, or $0.41 per diluted share. Return on average assets was 0.90% for the third quarter of 2008 and return on average equity was 9.39%. Year-to-date earnings were $17.10 million, or $1.54 per diluted share, representing 1.12% return on assets and 11.09% return on equity.

“Our loan quality remains strong and continues to compare very favorably to our peers,” said John M. Mendez, President and Chief Executive Officer. “Our operations remain strong against the backdrop of a difficult operating environment for interest rates, real estate, and the economy in general. We continue to see strong increases in our non-interest revenue areas. Despite these turbulent economic times, the Wealth Management Division grew assets under management to almost $900 million. We also continue to make great strides in the insurance line of business with our GreenPoint Insurance subsidiary, which continues to grow and perform in line with our expectations. Service charges on deposit accounts also posted very strong increases for the quarter.”

Net Interest Income

Tax-equivalent net interest margin for the third quarter was 3.90%. Net interest income was down $820 thousand, or 4.78%, from the third quarter of 2007. Interest income was $26.55 million, a decrease of $6.18 million, or 18.89%, from third quarter 2007. The decrease was due primarily to decreases in loan and investment yields and a decrease in average loans, a result of slower demand and enhanced underwriting. The yield on loans dropped to 6.53% from 7.48% and average loans decreased $71.68 million to $1.17 billion from third quarter 2007.

Third quarter interest expense decreased $5.36 million, or 34.40%, from 2007. Third quarter deposit costs decreased $3.40 million compared to the third quarter of 2007, while the average rate paid on interest-bearing deposits decreased 100 basis points to 2.37%. Throughout 2008, the Company has exercised discipline in pricing, which has led to declining certificate of deposit portfolio totals versus third quarter and year-end 2007. Compared to 2007, interest costs on borrowings decreased $1.96 million to $3.54 million, while the average balance decreased $56.30 million. Third quarter cost of interest-bearing liabilities decreased 105 basis points compared to last year. Average interest bearing liabilities decreased $124.63 million, or 7.31%, compared with third quarter 2007, including a decrease of $74.61 million in FHLB borrowings.

Non-interest Income

Total non-interest income increased $1.86 million, or 30.95%, compared with the third quarter of 2007. Wealth management revenues increased $49 thousand, or 5.40%, as investment advisory revenue increased $44 thousand. At September 30, 2008, the Wealth Management Division reported $897 million in assets under management due to increased account generation at the Bank’s investment advisory firm, Investment Planning Consultants.

Service charges on deposit accounts were $3.81 million, an increase of $802 thousand, or 26.68%, from the third quarter of 2007. Other service charges and fees increased $138 thousand, or 15.30%. Insurance commissions were $1.24 million for the third quarter of 2008. Insurance commissions are derived from GreenPoint Insurance Group, a September 2007 acquisition. “We are very excited about the insurance line of business and see great prospects for growth in the near future,” commented Mr. Mendez.

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Non-interest Expenses

Total non-interest expenses for the third quarter of 2008 increased $1.61 million, or 12.50%, from third quarter 2007. Salaries and benefits increased $827 thousand, or 12.64%, from the third quarter of 2007. GreenPoint accounted for approximately $687 thousand of the increase. Occupancy and furniture and equipment expenses increased due to the new branches and the addition of operating expenses at GreenPoint. Other non-interest expenses increased $273 thousand, or 6.19%, compared to the third quarter of 2007 and included $190 thousand of expenses at GreenPoint, $289 thousand in increased consulting fee expenses, and $196 thousand in decreased legal expenses. The third quarter efficiency ratio was 56.62% compared to 52.14% in 2007.

Credit Quality

The Company reported strong loan quality measures at September 30, 2008, and continues to compare very favorably to peer performance. Total loan delinquencies as a percent of total loans were 1.25% compared with 0.91% at June 30, 2008, and 0.65% at March 31, 2008. The ratio of allowance for loan losses as a percent of loans held for investment increased to 1.24% compared with 1.14% at June 30, 2008, and 1.09% at March 31, 2008. Non-performing assets increased to $7.89 million compared with $4.63 million at June 30, 2008, and $3.54 million at March 31, 2008. Non-performing loans as a percentage of loans held for investment were 0.60% compared with 0.35% at June 30, 2008, and 0.27% at March 31, 2008. The increase from second quarter was due largely to the addition of one commercial relationship at the end of September. The Company believes it is in a good position with the borrower, and does not expect any significant charge-off to result.

Net charge-offs in the third quarter of 2008 were $2.38 million. Charge-offs for the quarter were driven primarily by loans made by a lender in the Richmond market who is no longer with the Company. The Company made a provision for loan losses of $3.46 million in the third quarter of 2008 compared with no provision in the third quarter of 2007. Provisions for the quarter resulted in an increase of $1.08 million in loan loss reserve over the preceding quarter.

Balance Sheet

Since year-end 2007, consolidated assets have decreased $182.38 million to $1.97 billion. Included in that decrease is the prepayment of a $25.00 million FHLB advance, the call of a $50.00 million FHLB advance, a decrease of $43.90 million in deposits, largely in the savings and certificate of deposit portfolios, a decrease of $57.22 million in the loan portfolio, and a net decrease of $154.15 million in the investment portfolio. Total stockholders’ equity for the Company was $170.81 million, resulting in a book value per common share outstanding of $15.57 compared to $217.10 million and $19.61 per common share at December 31, 2007. The decrease in total equity principally reflects the increase in accumulated other comprehensive loss as a result of lower valuations on the Company’s securities portfolio and interest rate swap.

The third and fourth quarter cash dividends to shareholders were both $0.28 per share, making 2008 the 17^th consecutive year of dividend increases to shareholders. During the third quarter of 2008, the Company repurchased 4,000 shares at an average cost of approximately $27.60 per share.

The Company will host an investor and media teleconference and webcast on Thursday, October 30, 2008, at 11:00 a.m. To access the teleconference, the toll-free number to call is (877) 407-8033. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Current 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 2008 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 David D. Brown, Chief Financial Officer, at (800) 425-0839.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $1.97 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-six locations in the five states of Virginia, West Virginia, North Carolina, South 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 $897 million at September 30, 2008. First Community is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency located in High Point, North Carolina.

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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

		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(In Thousands, Except Share and Per Share Data)(Unaudited)		2008			2007			2008			2007
Interest	Interest and fees on loans held for investment	$	19,266		$	23,478		$	60,394		$	70,401
Income	Interest on securities-taxable		5,567			6,772			17,101			17,783
	Interest on securities-nontaxable		1,708			2,078			5,775			6,140
	Interest on federal funds sold and deposits		9			404			260			1,073
	Total interest income		26,550			32,732			83,530			95,397
Interest	Interest on deposits		6,684			10,083			22,543			29,131
Expense	Interest on borrowings		3,543			5,506			11,679			15,094
	Total interest expense		10,227			15,589			34,222			44,225
	Net interest income		16,323			17,143			49,308			51,172
	Provision for loan losses		3,461			—			4,721			—
	Net interest income after provision for loan losses		12,862			17,143			44,587			51,172
Non-Interest	Wealth management income		957			908			2,954			2,931
Income	Service charges on deposit accounts		3,808			3,006			10,370			8,077
	Other service charges and fees		1,040			902			3,225			2,609
	Insurance commissions		1,240			—			3,730			—
	Gain on sale of securities		163			50			2,133			209
	Other operating income		675			1,154			2,336			2,956
	Total non-interest income		7,883			6,020			24,748			16,782
Non-Interest	Salaries and employee benefits		7,371			6,544			22,741			19,120
Expense	Occupancy expense of bank premises		1,297			933			3,717			3,010
	Furniture and equipment expense		924			844			2,798			2,447
	Amortization of intangible assets		166			105			484			313
	Prepayment penalty		—			—			1,647			—
	Other operating expense		4,683			4,410			14,096			12,179
	Total non-interest expense		14,441			12,836			45,483			37,069
	Income before income taxes		6,304			10,327			23,852			30,885
	Income tax expense		1,753			3,011			6,751			9,006
	Net income	$	4,551		$	7,316		$	17,101		$	21,879
	Basic earnings per common share (EPS)	$	0.42		$	0.65		$	1.56		$	1.95
	Diluted earnings per common share (DEPS)	$	0.41		$	0.65		$	1.54		$	1.94
	Weighted Average Shares Outstanding:
	Basic		10,956,867			11,179,322			10,992,901			11,232,895
	Diluted		11,034,059			11,230,220			11,071,925			11,299,727
	For the period:
	Return on average assets		0.90	%		1.34	%		1.12	%		1.41	%
	Return on average equity		9.39	%		13.31	%		11.09	%		13.45	%
	Return on average tangible equity		15.44	%		18.86	%		17.31	%		18.97	%
	Cash dividends per share	$	0.28		$	0.27		$	0.84		$	0.81

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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements

		As of and for the Quarter Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
(In Thousands, Except Share and Per Share Data)(Unaudited)		2008		2008		2008		2007		2007
Interest	Interest and fees on loans held for investment	$	19,266	$	19,891	$	21,237	$	23,100	$	23,478
Income	Interest on securities-taxable		5,567		5,467		6,067		6,942		6,772
	Interest on securities-nontaxable		1,708		2,004		2,063		2,050		2,078
	Interest on federal funds sold and deposits		9		71		180		102		404
	Total interest income		26,550		27,433		29,547		32,194		32,732
Interest	Interest on deposits		6,684		7,118		8,741		9,626		10,083
Expense	Interest on borrowings		3,543		3,690		4,446		5,425		5,506
	Total interest expense		10,227		10,808		13,187		15,051		15,589
	Net interest income		16,323		16,625		16,360		17,143		17,143
	Provision for loan losses		3,461		937		323		717		—
	Net interest income after provision for loan losses		12,862		15,688		16,037		16,426		17,143
Non-Int	Wealth management income		957		1,098		899		949		908
Income	Service charges on deposit accounts		3,808		3,463		3,099		3,310		3,006
	Other service charges, commissions and fees		1,040		1,064		1,121		991		902
	Insurance commissions		1,240		1,146		1,344		1,142		—
	Gain on sale of securities		163		150		1,820		202		50
	Other operating income		675		803		858		1,455		1,154
	Total non-interest income		7,883		7,724		9,141		8,049		6,020
Non-Int	Salaries and employee benefits		7,371		7,580		7,790		6,728		6,544
Expense	Occupancy expense of bank premises		1,297		1,256		1,164		1,170		933
	Furniture and equipment expense		924		973		901		923		844
	Amortization of intangible assets		166		158		160		154		105
	Prepayment penalty		—		—		1,647		—		—
	Other operating expense		4,683		4,792		4,621		4,419		4,410
	Total non-interest expense		14,441		14,759		16,283		13,394		12,836
	Income before income taxes		6,304		8,653		8,895		11,081		10,327
	Income tax expense		1,753		2,415		2,583		3,328		3,011
	Net income	$	4,551	$	6,238	$	6,312	$	7,753	$	7,316
Per	Basic EPS	$	0.42	$	0.57	$	0.57	$	0.70	$	0.65
Share	Diluted EPS	$	0.41	$	0.56	$	0.57	$	0.69	$	0.65
	Cash dividends per share	$	0.28	$	0.28	$	0.28	$	0.27	$	0.27
	Weighted Average Shares Outstanding:
	Basic		10,956,867		10,992,301		11,029,931		11,120,938		11,179,322
	Diluted		11,034,059		11,073,440		11,107,610		11,205,292		11,230,220
	Actual shares outstanding at period end		10,967,597		10,954,078		11,012,574		11,069,646		11,175,550
	Book Value per share at period end	$	15.57	$	17.95	$	18.98	$	19.61	$	19.43
	Market Value per share at period end	$	37.52	$	28.20	$	36.42	$	31.89	$	36.23

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

	September 30,			June 30,			March 31,			December 31,			September 30,
(In Thousands)	2008			2008			2008			2007			2007
Cash and due from banks	$	53,238		$	44,672		$	44,004		$	50,051		$	39,877
Interest-bearing deposits with banks		664			10,745			33,111			2,695			19,427
Securities available for sale		513,001			598,438			598,853			664,120			671,360
Securities held to maturity		9,043			10,511			12,075			12,075			12,548
Loans held for sale		140			1,522			2,116			811			2,294
Loans held for investment, net of unearned income		1,168,286			1,181,107			1,179,504			1,225,502			1,239,207
Less allowance for loan losses		14,510			13,433			12,862			12,833			13,190
Net loans		1,153,776			1,167,674			1,166,642			1,212,669			1,226,017
Premises and equipment		50,504			50,075			49,444			48,383			46,702
Other real estate owned		896			500			400			545			211
Interest receivable		9,156			9,992			9,742			12,465			13,289
Intangible assets		72,222			71,181			71,239			70,056			69,104
Other assets		104,817			88,377			77,487			75,968			73,817
Total Assets	$	1,967,457		$	2,053,687		$	2,065,113		$	2,149,838		$	2,174,646
Deposits:
Demand	$	214,582		$	224,716		$	224,097		$	224,087		$	224,297
Interest-bearing demand		186,403			172,623			172,864			153,570			143,719
Savings		312,451			312,148			305,725			327,691			348,457
Time		636,108			629,920			656,267			688,095			686,564
Total Deposits		1,349,544			1,339,407			1,358,953			1,393,443			1,403,037
Interest, taxes and other liabilities		20,494			18,695			22,293			21,454			20,120
Federal funds purchased		29,500			66,500			—			18,500			15,600
Securities sold under agreements to repurchase		180,388			215,610			208,000			207,427			226,784
FHLB and other indebtedness		216,720			216,862			266,889			291,916			291,942
Total Liabilities		1,796,646			1,857,074			1,856,135			1,932,740			1,957,483
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,499
Additional paid-in capital		108,862			108,926			108,896			108,825			108,794
Retained earnings		124,731			123,253			120,087			117,670			112,911
Treasury stock, at cost		(16,882	)		(17,328	)		(15,457	)		(13,613	)		(10,051	)
Accumulated other comprehensive loss		(57,399	)		(29,737	)		(16,047	)		(7,283	)		(5,990	)
Total Stockholders’ Equity		170,811			196,613			208,978			217,098			217,163
Total Liabilities and Stockholders’ Equity	$	1,967,457		$	2,053,687		$	2,065,113		$	2,149,838		$	2,174,646

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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,
	2008			2008			2008			2007			2007
	(Dollars in Thousands)
Ratios
Return on average assets		0.90	%		1.23	%		1.21	%		1.43	%		1.34	%
Return on average equity		9.39	%		12.08	%		11.66	%		13.95	%		13.31	%
Return on average tangible equity		15.44	%		18.75	%		17.53	%		20.67	%		18.86	%
Net interest margin		3.90	%		3.92	%		3.78	%		3.75	%		3.70	%
Efficiency ratio for the quarter (a)		56.62	%		57.55	%		58.00	%		51.22	%		52.14	%
Efficiency ratio year-to-date (a)		57.39	%		57.78	%		58.00	%		51.20	%		51.18	%
Equity as a percent of total assets at end of period		8.68	%		9.57	%		10.12	%		10.10	%		9.99	%
Average earning assets as a percentage of average total assets		87.89	%		88.83	%		89.10	%		89.61	%		90.23	%
Average loans as a percentage of average deposits		88.25	%		88.10	%		87.68	%		88.49	%		87.91	%
Average Balances
Investments	$	582,605		$	623,338		$	635,350		$	684,227		$	678,790
Loans		1,174,855			1,180,813			1,205,481			1,238,620			1,246,530
Earning assets		1,758,895			1,817,322			1,863,433			1,932,481			1,958,858
Total assets		2,001,191			2,045,773			2,091,397			2,156,484			2,171,036
Deposits		1,331,293			1,340,384			1,374,853			1,399,690			1,417,922
Interest-bearing deposits		1,120,138			1,122,680			1,161,881			1,178,833			1,188,470
Borrowings		459,475			478,361			477,903			516,635			515,775
Interest-bearing liabilities		1,579,613			1,601,041			1,639,784			1,695,468			1,704,245
Equity		192,743			207,660			217,679			220,520			218,049
Tax equivalent net interest income		17,264			17,726			17,491			18,265			18,281

(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,
	2008			2008			2008			2007			2007
	(Dollars in Thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	13,433		$	12,862		$	12,833		$	13,190		$	13,934
Provision for Loan Losses		3,461			937			323			717			—
Charge-offs		(2,601	)		(1,198	)		(966	)		(1,482	)		(1,009	)
Recoveries		217			832			672			408			265
Net charge-offs		(2,384	)		(366	)		(294	)		(1,074	)		(744	)
Ending balance	$	14,510		$	13,433		$	12,862		$	12,833		$	13,190
Summary of Asset Quality
Nonaccrual loans	$	6,997		$	4,126		$	3,137		$	2,923		$	2,869
Loans 90 days or more past due and still accruing		—			—			—			—			—
Total non-performing loans		6,997			4,126			3,137			2,923			2,869
Other real estate owned		896			500			400			545			211
Total non-performing assets	$	7,893		$	4,626		$	3,537		$	3,468		$	3,080
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.60	%		0.35	%		0.27	%		0.24	%		0.23	%
Non-performing assets as a percentage of:
Total assets		0.40	%		0.23	%		0.17	%		0.16	%		0.14	%
Loans held for investment plus other real estate owned		0.68	%		0.39	%		0.30	%		0.28	%		0.25	%
Annualized net charge-offs as a percentage of average loans held for investment		0.82	%		0.12	%		0.10	%		0.34	%		0.24	%
Allowance for loan losses as a percentage of loans held for investment		1.24	%		1.14	%		1.09	%		1.05	%		1.06	%
Ratio of allowance for loan losses to nonaccrual loans		2.07			3.26			4.10			4.39			4.60

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

	Three Months Ended September 30,
	2008							2007
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
Earning assets	Balance		(1)		(1)			Balance		(1)		(1)
	(Dollars in Thousands)
Loans held for investment (2)	$	1,174,855	$	19,286		6.53	%	$	1,246,530	$	23,497		7.48	%
Securities available for sale		573,046		8,035		5.58	%		666,199		9,715		5.79	%
Held to maturity securities		9,559		161		6.70	%		12,591		254		8.00	%
Interest-bearing deposits with banks		1,435		9		2.50	%		33,538		404		4.78	%
Total earning assets		1,758,895	$	27,491		6.22	%		1,958,858	$	33,870		6.86	%
Other assets		242,296							212,178
Total	$	2,001,191						$	2,171,036
Interest-bearing liabilities
Interest-bearing demand deposits	$	178,632	$	73		0.16	%	$	145,324	$	119		0.32	%
Savings deposits		309,364		1,172		1.51	%		344,866		2,088		2.40	%
Time deposits		632,142		5,439		3.42	%		698,280		7,876		4.47	%
Fed funds purchased		42,702		251		2.34	%		751		10		5.28	%
Retail repurchase agreements		149,984		730		1.94	%		173,630		1,516		3.46	%
Wholesale repurchase agreements		50,000		389		3.10	%		50,000		556		4.41	%
FHLB borrowings & other long-term debt		216,789		2,173		3.99	%		291,394		3,424		4.66	%
Total interest-bearing liabilities		1,579,613		10,227		2.58	%		1,704,245		15,589		3.63	%
Noninterest-bearing demand deposits		211,155							229,452
Other liabilities		17,680							19,290
Stockholders’ equity		192,743							218,049
Total	$	2,001,191						$	2,171,036
Net interest income			$	17,264						$	18,281
Net interest rate spread (3)						3.64	%						3.23	%
Net interest margin (4)						3.90	%						3.70	%

(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,
	2008							2007
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
Earning Assets	Balance		(1)		(1)			Balance		(1)		(1)
					(Dollars in Thousands)
Loans held for investment (2)	$	1,187,006	$	60,456		6.80	%	$	1,255,209	$	70,445		7.50	%
Securities available for sale		602,802		25,310		5.61	%		609,772		26,267		5.76	%
Held to maturity securities		10,849		675		8.31	%		16,171		965		7.98	%
Interest-bearing deposits with banks		12,363		260		2.81	%		29,726		1,073		4.83	%
Total Earning Assets		1,813,020	$	86,701		6.39	%		1,910,878	$	98,750		6.91	%
Other assets		232,933							203,831
Total	$	2,045,953						$	2,114,709
Interest-bearing liabilities
Interest-bearing demand deposits	$	171,661	$	213		0.17	%	$	146,283	$	349		0.32	%
Savings deposits		314,903		3,847		1.63	%		329,854		5,537		2.24	%
Time deposits		648,282		18,483		3.81	%		700,006		23,245		4.44	%
Fed funds purchased & Repurchase Agreements		18,241		330		2.42	%		5,447		229		5.62	%
Retail repurchase agreements		151,107		2,540		2.25	%		167,154		4,441		3.55	%
Wholesale repurchase agreements		50,000		1,077		2.88	%		50,000		1,651		4.41	%
FHLB borrowings & other long-term debt		252,520		7,732		4.09	%		247,428		8,773		4.74	%
Total Interest-bearing Liabilities		1,606,714		34,222		2.85	%		1,646,172		44,225		3.59	%
Noninterest-bearing demand deposits		213,934							231,187
Other liabilities		19,326							19,064
Stockholders’ equity		205,979							218,286
Total	$	2,045,953						$	2,114,709
Net interest income			$	52,479						$	54,525
Net interest rate spread (3)						3.54	%						3.32	%
Net interest margin (4)						3.87	%						3.81	%

(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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