EXHIBIT 99
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: John W. Conlon
- --------------------- Chief Financial Officer
January 20, 2004 (740) 373-3155
PEOPLES BANCORP INC. REPORTS 2003 RESULTS OF OPERATIONS
---------------------------------------------------------
MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) announced
a net loss of $142,000, or $0.01 per diluted share, for the fourth quarter of
2003, compared to net income of $4,500,000, or $0.51 per diluted share, a year
ago. Earnings in the fourth quarter of 2003 were reduced by $5,372,000 of
after-tax net charges resulting from the previously announced balance sheet
restructuring, which included losses on sales of investment securities,
penalties associated with the prepayment of long-term debt and gain on sale of
credit card portfolio. Excluding the impact of these transactions, earnings in
the fourth quarter of 2003 would have been $5,230,000, or $0.48 per diluted
share.
Net income in 2003 was $16,254,000, or $1.52 per diluted share, down
from $18,752,000, or $2.19 per diluted share, a year ago. Excluding the
after-tax impact of the aforementioned transactions, earnings in 2003 would have
been $21,902,000, or $2.05 per diluted share. Peoples' lower earnings per share
in 2003 were attributable to continued net interest margin compression resulting
from assets repricing downward, coupled with additional common shares
outstanding. In addition, net income in 2002 was positively impacted by Peoples'
repurchase of $7.0 million of trust preferred securities issued by PEBO Capital
Trust I, at a significant discount, resulting in an after-tax gain of $410,000,
or $0.04 per diluted share.
"Our operating results reflect the difficulty of building upon the
success of 2002, especially considering the challenging economic and interest
rate conditions," said Robert E. Evans, Peoples' Chairman and CEO. "The balance
sheet restructuring in the fourth quarter allows Peoples to be better positioned
for long-term earnings growth."
In the fourth quarter of 2003, net interest income was $12,885,000
compared to $14,085,000 last quarter and $11,619,000 a year ago. Net interest
margin was 3.32% in the fourth quarter of 2003 versus 3.58% and 3.87% for the
third quarter of 2003 and fourth quarter of 2002, respectively. The net interest
margin for the fourth quarter of 2003 was negatively impacted by approximately
$376,000, or 9 basis points, of combined additional premium amortization of
$296,000 and interest income reversals of $80,000 on mortgage-backed securities
identified during an analysis and reconcilement process of the investment
portfolio resulting from the conversion to a new bond accounting system. This
reconcilement resulted in the recognition of the additional premium amortization
expense for the quarter and the reversal of interest income that had been
recognized during earlier periods in 2003. Additionally, a decline in interest
income on loans of approximately $621,000, or 15 basis points of margin, during
the fourth quarter of 2003 also contributed to the decrease in net interest
income and net interest margin. Interest expense from interest-bearing
liabilities decreased by approximately $515,000 resulting in an increase in net
interest margin of 13 basis points for this quarter when compared to the third
quarter of 2003. For the year ended December 31, 2003, net interest income
totaled $53,605,000 and net interest margin was 3.52% compared to $47,652,000
and 4.17% for the same period in 2002.
"Recent acquisitions, coupled with an investment growth strategy in the
first quarter, increased earning assets, and produced higher levels of net
interest income in 2003," said Jack Conlon, Peoples' Chief Financial Officer.
"However, we continue to experience net interest margin compression, both from
assets repricing downward and our limited ability to lower our costs of funds to
match the decline in yields. In addition, the high rate of prepayments on
mortgage-backed investment securities has negatively impacted yields in the
investment portfolio due to accelerated amortization of bond premiums and return
of principal. While net interest margin pressures could continue as long as
rates remain at their current low levels, recent restructurings of investment
securities and FHLB borrowings are expected to have a positive impact on future
net interest income and margin although there is still the possibility of
additional margin compression."
On December 31, 2003, Peoples adopted the Financial Accounting
Standards Board Interpretation No. 46, "Consolidation of Variable Interest
Entities" ("FIN 46"), as required. The adoption of FIN 46 caused Peoples to
deconsolidate its subsidiary grantor trusts, which issued mandatorily redeemable
preferred securities of the grantor trusts to third parties. As a result,
Peoples recognizes the junior subordinated debentures owned by the grantor
trusts as liabilities on the balance sheet and the related expense as interest
expense versus non-interest expense as it had been classified in the past.
Peoples elected to apply the requirements of FIN 46 retroactively, as permitted,
which resulted in the restatement of prior periods and certain financial ratios,
including net interest margin, efficiency and non-interest leverage ratios. The
adoption of FIN 46, and subsequent restatement, did not have any impact on
Peoples' net income or stockholders' equity.
Non-interest income was $4,758,000 for the fourth quarter of 2003, up
16% from $4,110,000 for 2002's fourth quarter. For the year ended December 31,
2003, non-interest income grew 21%, totaling $18,281,000 compared to $15,092,000
a year ago. These increases were attributable to higher deposit service charge
income and mortgage banking revenues, while revenues from Peoples' e-banking
services and fiduciary activities were also significant contributors.
"We are pleased with the double-digit growth in non-interest income,
which eased some of the earnings pressure experienced from the continued
compression of net interest margin," commented Mark Bradley, Peoples' Chief
Operating Officer. "Although our mortgage banking revenues decreased during the
fourth quarter due to a slow down in the refinance market, mortgage banking is a
key part of Peoples' long-term business strategy. Our associates remain
committed to building long-lasting relationships with our customers which should
further enhance top-line revenues."
Deposit account service charges totaled $2,219,000 for the fourth
quarter of 2003 and $8,192,000 for the year ended December 31, 2003, up 12% and
17%, respectively, compared to the same periods in 2002 due to higher volumes of
overdraft and non-sufficient funds fees. Peoples' mortgage banking activities
produced revenues of $385,000 for the three months ended December 31, 2003,
versus $135,000 for 2002's fourth quarter due to increased activity prompted by
both the low interest rate environment and increased focus on mortgage banking
operations during 2003. On a year-to-date basis, mortgage banking income was
$1,352,000 in 2003 compared to $157,000 in 2002, as Peoples began selling loans
into the secondary market in late 2002. Peoples' fiduciary revenues improved to
$777,000 (or 30%) for the fourth quarter of 2003 and $3,363,000 (or 36%) for the
year ended December 31, 2003, compared to $597,000 and $2,479,000 for the same
periods a year ago, respectively. A significant amount of this increase is from
increased trust assets under management due to the Kentucky Bancshares
acquisition in May 2003. E-banking revenues, primarily ATM and debit card fees,
totaled $538,000 for the fourth quarter of 2003, up 11% from a year ago, and
grew to $2,055,000 in 2003, from $1,729,000 in 2002, an increase of 19%.
Non-interest expense was $17,329,000 in the fourth quarter of 2003
versus $8,690,000 for of the same period in 2002, with the $6.8 million of FHLB
prepayment penalties accounting for the majority of the increase. Salaries and
benefits, Peoples' largest operating expense, totaled $5,054,000 for the quarter
ended December 31, 2003, an increase of 12% from a year ago due primarily to the
addition of approximately 70 associates in conjunction with acquisitions. For
the fourth quarter of 2003, occupancy and equipment costs increased 16%, as
acquisitions and investments in technology produced additional depreciation
expense in 2003, while intangible amortization more than doubled from a year
ago, also due to acquisitions. On a year-to-date basis, non-interest expense
totaled $45,903,000 through December 31, 2003, up 37% from $33,621,000 in 2002.
Excluding the FHLB prepayment penalties and intangible amortization expense,
non-interest expense increased 14% in 2003 compared to the prior year largely
attributable to additional expenses incurred as a result of the Kentucky
Bancshares acquisition and a full-year impact of the First Colony acquisition
completed in mid-2002.
The non-interest leverage ratio serves as a measurement of efficiency
and performance. The ratio, defined as non-interest income as a percentage of
operating expenses, excludes gains and losses on securities transactions, asset
disposals and sale of credit card portfolio, as well as intangible asset
amortization and FHLB prepayment penalties. In 2003, the non-interest leverage
ratio was 48.7%, an improvement from 45.8% a year ago, due to stronger
non-interest revenues and controlled expense growth.
"Cost control is a key focus as we strive to be an efficient company,
which is reflected in the improved non-interest income leverage ratio,"
commented Bradley. "Peoples' ability to efficiently offer products and services
to its customers, particularly in this low interest rate environment, is an
important key to improved profitability. In 2004, our focus will continue to be
revenue diversification and a focus on non-interest income growth."
Nonperforming loans comprised 0.73% of total loans at December 31, 2003
compared to 0.88% at December 31, 2002, while nonperforming assets comprised
0.41% and 0.55% of total assets for the same periods, respectively. In the
fourth quarter of 2003, Peoples' provision for loan losses was $915,000, down
from $920,000 in the prior quarter and down from $1,044,000 a year ago. At
December 31, 2003, the allowance for loan losses was $14.6 million, or 1.59% of
total loans, compared to $13.1 million, or 1.54% of total loans, at year-end
2002.
"Peoples' solid asset quality has remained a source of strength during
the recent period of economic uncertainty," stated Bradley. "We are pleased with
the lower level of net chargeoffs for the year, which reflects our commitment to
underwriting standards that produce higher quality loans."
In the fourth quarter of 2003, net loan chargeoffs were $763,000, down
from $843,000 a year ago, which is attributable to fewer commercial loan
chargeoffs. Commercial loans comprise the largest portion of net chargeoffs,
totaling $250,000 and $381,000 for the three months ended December 31, 2003 and
2002, respectively. Net chargeoffs relating to the Overdraft Privilege Program
were $216,000 in the fourth quarter of 2003 versus $196,000 in 2002's fourth
quarter. Consumer loan net chargeoffs were $174,000 for the fourth quarter of
2003, down from $218,000 last year, while real estate net chargeoffs totaled
$72,000 and $11,000 for the same periods, respectively. In 2003, net chargeoffs
were down 26% compared to 2002, totaling $2,685,000 versus $3,642,000, due
almost entirely to Peoples charging down a group of troubled loans that were
part of a single client relationship in the first half of 2002.
At December 31, 2003, loans totaled $917.8 million, up $67.0 million
since year-end 2002, due mainly to loans acquired in the Kentucky Bancshares
acquisition. Peoples also internally generated nearly $70 million of commercial
loans in 2003, partially offsetting declines in real estate and consumer loans
and the impact of the sale of Peoples' credit card portfolio. Throughout 2003,
real estate loan balances declined primarily due to Peoples' increased mortgage
banking activities that resulted in $66.9 million of mortgage loan originations
being sold into the secondary market during the year. Consumer loan balances
continue to drop due to the combination of a decrease in demand and Peoples'
focus on commercial and real estate based loans.
Late in the fourth quarter of 2003, Peoples entered into an agreement
to sell its existing credit card portfolio. Preliminary settlement of the sale
occurred on December 31, 2003, which resulted in Peoples recognizing a pre-tax
gain of $1.2 million, net of expenses. Final settlement of the sale is expected
to be completed in the first quarter of 2004, with conversion of the portfolio
in the second quarter of 2004. Through a new alliance marketing program, Peoples
will continue to make available credit cards to its current customers and
prospects. This alliance is expected to produce benefits for Peoples' customers
as it will offer enhanced product features, such as rewards programs and lower
interest rates, as well as Peoples' shareholders by maintaining an ongoing
revenue stream and further penetrating its customer base.
"Overall, our results reflect our continued focus on creating
long-term stakeholder value," summarized Bradley. "We are optimistic recent
strategic actions, while negatively impacting our short-term performance, will
allow us to produce long-term benefits for our customers, associates and
shareholders."
Peoples Bancorp Inc., a diversified financial products and services
company with $1.7 billion in assets, makes available a complete line of banking,
investment, insurance, and trust solutions through Peoples Bank's 49 locations
and 32 ATMs in Ohio, West Virginia, and Kentucky. Peoples' common shares are
traded on the NASDAQ national market under the symbol "PEBO", and Peoples is a
member of the Russell 3000 index of US publicly traded companies. Learn more
about Peoples or enroll in Peoples' Internet banking product at
www.peoplesbancorp.com.
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss 2003
results of operations on January 21, 2004, at 4:00 p.m. eastern time, with
members of Peoples' executive management participating. Analysts, media and
individual investors are invited to participate in the conference call by
calling (877) 735-0939. A simultaneous Webcast of the conference call audio will
be available online via the home page and/or Investor Relations section of
www.peoplesbancorp.com. Participants are encouraged to call or sign in at least
15 minutes prior to the scheduled conference call time to ensure participation
or download and install the necessary software. A replay of the call will be
available on Peoples' website for 30 days.
Safe Harbor Statement:
This press release may contain certain forward-looking statements with
respect to Peoples' financial condition, results of operations, plans,
objectives, future performance and business. Except for the historical and
present factual information contained in this press release, the matters
discussed in this press release, and other statements identified by words such
as "expects," "believes," "plans," "will," "would," "should," "could" and
similar expressions are forward-looking statements within the meaning of
Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated
thereunder, and 21E of the Securities Exchange Act of 1934, as amended, and Rule
3b-6 promulgated thereunder. These forward looking statements are subject to
risks and uncertainties that may cause actual results to differ materially.
Factors that might cause such a difference include, but are not limited to: (1)
competitive pressures among depository institutions increase significantly; (2)
changes in the interest rate environment impact interest margins; (3) prepayment
speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general
economic conditions are less favorable than expected; (5) political
developments, wars or other hostilities may disrupt or increase volatility in
securities markets or other economic conditions; (6) legislative or regulatory
changes or actions adversely affect Peoples' business; (7) changes and trends in
the securities markets; (8) a delayed or incomplete resolution of regulatory
issues; (9) the impact of reputational risk created by these developments on
such matters as business generation and retention, funding and liquidity; (10)
the outcome of regulatory and legal proceedings and (11) other risk factors
relating to the banking industry or Peoples as detailed from time to time in
Peoples' reports filed with the Securities and Exchange Commission ("SEC").
Peoples undertakes no obligation to release revisions to these forward-looking
statements or reflect events or circumstances after the date of this release.
Copies of documents filed with the SEC are available free of charge at the
Commission's website at http://www.sec.gov and/or from Peoples' website.
PEOPLES BANCORP INC. (Nasdaq: PEBO)
Financial Highlights (Unaudited)
--------------------------------- ---------------------------------
Three Months Ended Year Ended
(in $000's, except per share data) December 31, December 31,
2003 2002 2003 2002
--------------------------------- ---------------------------------
PER SHARE DATA (a) Net (loss) income per share:
Basic $ (0.01) $ 0.53 $ 1.56 $ 2.25
Diluted $ (0.01) $ 0.51 $ 1.52 $ 2.19
Cash dividends declared per share $ 0.18 $ 0.14 $ 0.65 $ 0.56
Book value per share $ 16.11 $ 14.97 $ 16.11 $ 14.97
Tangible book value per share (b) $ 11.76 $ 11.85 $ 11.76 $ 11.85
Closing stock price at end of period $ 29.51 $ 24.38 $ 29.51 $ 24.38
Dividend payout as a percentage of net income NM 26.60% 42.06% 24.91%
Actual shares outstanding (net of treasury shares) 10,603,792 9,829,965 10,603,792 9,829,965
Weighted average shares outstanding:
Basic 10,614,989 8,522,526 10,433,708 8,329,109
Diluted 10,874,876 8,762,246 10,660,083 8,557,591
PERFORMANCE RATIOS (c)
Return on average equity -0.33% 15.25% 9.75% 17.69%
Return on average assets -0.03% 1.32% 0.95% 1.46%
Non-interest leverage ratio (d) 47.38% 48.50% 48.68% 45.77%
Efficiency ratio (e) 55.59% 52.50% 51.06% 51.36%
Net interest margin (fully tax equivalent) 3.32% 3.87% 3.52% 4.17%
Net loan chargeoffs as a percentage of average loans 0.33% 0.39% 0.30% 0.44%
NET CHARGEOFFS
Gross chargeoffs $ 1,111 $ 1,005 $ 3,786 $ 4,328
Recoveries $ 348 $ 162 $ 1,101 $ 686
--------------- --------------- --------------- ---------------
Net chargeoffs $ 763 $ 843 $ 2,685 $ 3,642
--------------------------------- ---------------------------------
NM = Not meaningful
<FN>
(a) Amounts adjusted for a 5% stock dividend issued August 29, 2003.
(b) Excludes balance sheet impact of intangible assets acquired through use of
purchase accounting for acquisitions.
(c) Ratios for the three month periods ended December 31, 2003 and 2002
presented on an annualized basis.
(d) Non-interest income (less securities and asset disposal gains/losses) as a
percentage of non-interest expense (less intangible amortization). The
ratio for the three months and year ended December 31, 2003, excludes
Federal Home Loan Bank prepayment penalties of $6,817,000 and $6,858,000,
respectively, and gain on sale of credit card portfolio of $1,423,000. The
ratio for the year ended December 31, 2002, excludes gain on early debt
extinguishment of $631,000.
(e) Non-interest expense (less intangible amortization) as a percentage of
fully tax equivalent net interest income plus non-interest income. The
ratio for the three months and year ended December 31, 2003, excludes
Federal Home Loan Bank prepayment penalties of $6,817,000 and $6,858,000,
respectively, and gain on sale of credit card portfolio of $1,423,000. The
ratio for the year ended December 31, 2002, excludes gain on early debt
extinguishment of $631,000.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
------------------------------- -------------------------------
Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2003 2002 2003 2002
------------------------------- -------------- --------------
Interest income $ 21,836 $ 20,658 $ 91,655 $ 82,968
Interest expense 8,951 9,039 38,050 35,316
-------------- -------------- -------------- --------------
Net interest income 12,885 11,619 53,605 47,652
Provision for loan losses 915 1,044 3,601 4,067
-------------- -------------- -------------- --------------
Net interest income after provision for loan losses 11,970 10,575 50,004 43,585
Net (loss) gain on securities transactions (1,880) 114 (1,905) 216
Net loss on asset disposals (32) (58) (261) (72)
Gain on sale of credit card portfolio 1,423 - 1,423 -
Gain on early debt extinguishment - - - 631
Non-interest income:
Service charges on deposits 2,219 1,977 8,192 6,976
Fiduciary revenues 777 597 3,363 2,479
Electronic banking revenues 538 483 2,055 1,729
Mortgage banking income 385 135 1,352 157
Insurance and investment commissions 365 448 1,465 1,966
Business owned life insurance 343 386 1,403 1,471
Other non-interest income 131 84 451 314
-------------- -------------- -------------- --------------
Total non-interest income 4,758 4,110 18,281 15,092
Non-interest expense:
Salaries and benefits 5,054 4,499 19,636 18,100
Occupancy and equipment 1,228 1,061 4,561 3,915
Data processing and software 561 340 1,596 1,208
Amortization of intangible assets 470 215 1,493 646
Professional fees 496 519 1,938 1,987
Franchise taxes 313 212 1,126 745
Bankcard costs 274 258 1,160 974
Marketing 198 228 1,053 1,006
Long-term debt prepayment penalties 6,817 - 6,858 -
Other non-interest expense 1,918 1,358 6,482 5,040
-------------- -------------- -------------- --------------
Total non-interest expense 17,329 8,690 45,903 33,621
-------------- -------------- -------------- --------------
(Loss) income before income taxes (1,090) 6,051 21,639 25,831
Income tax (benefit) expense (948) 1,551 5,385 7,079
-------------- -------------- -------------- --------------
Net (loss) income $ (142) $ 4,500 $ 16,254 $ 18,752
-------------- -------------- -------------------------------
Fully tax equivalent net interest income $ 13,307 $ 12,032 $ 55,266 $ 49,264
PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCES
------------------------------- -------------------------------
Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2003 2002 2003 2002
------------------------------- -------------------------------
Average gross loans $ 920,903 $ 858,670 $ 894,419 $ 824,731
Average earning assets 1,608,011 1,243,545 1,574,381 1,180,698
Average intangible assets 46,378 30,667 40,775 23,720
Average total assets 1,753,326 1,360,377 1,710,042 1,288,321
Average non-interest bearing deposits 132,263 105,618 124,574 100,740
Average interest bearing deposits:
Savings 178,886 143,022 172,240 116,512
Interest-bearing demand deposits 267,029 279,845 272,799 279,407
Time deposits 462,919 421,035 453,487 393,676
-------------- -------------- -------------- --------------
Total average interest bearing deposits 908,834 843,902 898,526 789,595
Average stockholders' equity $ 172,049 $ 118,021 $ 166,640 $ 106,025
------------------------------- -------------------------------
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
----------------- ----------------- -----------------
(in $000's, end of period) December 31, September 30, December 31,
2003 2003 2002
----------------- ----------------- -----------------
LOAN PORTFOLIO
Commercial, financial, and agricultural $ 512,069 $ 496,975 $ 392,528
Real estate, construction 21,056 17,714 16,231
Real estate, mortgage 304,573 314,303 331,948
Consumer 79,926 86,108 103,635
Credit card (a) 221 6,302 6,549
----------------- ------------------------------------
Total loans $ 917,845 $ 921,402 $ 850,891
ASSET QUALITY
Allowance for loan losses as a percent of total loans 1.59% 1.57% 1.54%
Allowance for loan losses as a percent of
nonperforming loans (b) 216.1% 254.7% 175.3%
Nonperforming loans as a percent of total loans (b) 0.73% 0.61% 0.88%
Nonperforming assets as a percent of total assets 0.41% 0.39% 0.55%
Nonperforming assets as a percent of total loans and
other real estate owned
real estate owned 0.78% 0.75% 0.89%
Nonperforming assets (in $000's, end of period):
Loans 90 days or more past due $ 188 $ 874 $ 407
Renegotiated loans $ - $ 684 $ 2,439
Nonaccrual loans $ 6,556 $ 4,105 $ 4,617
Other real estate owned $ 392 $ 1,279 $ 148
----------------- ----------------- -----------------
Total nonperforming assets $ 7,136 $ 6,942 $ 7,611
REGULATORY CAPITAL (c)
Tier 1 risk-based capital 14.08% 14.54% 15.43%
Total risk-based capital ratio (Tier 1 and Tier 2) 15.43% 15.88% 16.79%
Leverage ratio 8.68% 8.88% 10.56%
Tier 1 capital $ 147,591 $ 152,862 $ 139,208
Total capital (Tier 1 and Tier 2) $ 161,780 $ 166,952 $ 151,404
Total risk-weighted assets $ 1,048,295 $ 1,051,489 $ 901,973
SUPPLEMENTAL DATA
Trust assets under management $ 632,868 $ 578,958 $ 500,338
Employees (full-time equivalent) 511 498 462
Full service offices 42 43 39
Supermarket offices 4 4 4
ATMs 32 33 30
Announced treasury share plans: (d)
Total shares authorized for plan 315,000 315,000 202,125
Shares purchased 61,300 53,340 -
Average price $ 27.96 $ 25.54 $ -
----------------- ----------------- -----------------
<FN>
(a) Balance at December 31, 2003, represents nonqualifying balances not included
in preliminary settlement of credit card portfolio sale subject to final
settlement.
(b) Nonperforming loans include loans 90 days past due and accruing,
renegotiated loans, and nonaccrual loans.
(c) December 31, 2003 data based on preliminary analysis and is subject to
revision.
(d) 2003 data reflects 2003 Stock Repurchase Program of 315,000 shares. 2002
data reflects 2002 Stock Repurchase Program of 202,125 shares. All share
amounts adjusted for stock dividends. Reflects treasury shares purchased
and average price paid for the three-month period ended on the date
indicated.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
------------------ ------------------
(in $000's) December 31, December 31,
2003 2002
------------------ ------------------
ASSETS
Cash and cash equivalents $ 73,426 $ 55,550
Available-for-sale investment securities, at estimated fair value
(amortized cost of $634,801 at December 31, 2003, and $402,048 at
December 31, 2002) 641,464 412,100
Loans, net of unearned interest 917,845 850,891
Allowance for loan losses (14,575) (13,086)
--------------- ---------------
Net loans 903,270 837,805
Bank premises and equipment, net of accumulated depreciation 22,155 18,058
Goodwill 41,407 25,504
Other intangible assets 7,298 5,234
Other real estate owned 392 148
Other assets 46,692 39,962
--------------- ---------------
TOTAL ASSETS $ 1,736,104 $ 1,394,361
--------------- ---------------
LIABILITIES
Non-interest bearing deposits $ 133,709 $ 115,907
Interest bearing deposits 894,821 839,970
--------------- ---------------
Total deposits 1,028,530 955,877
Federal funds purchased, securities sold under repurchase agreements,
and other short term borrowings 108,768 48,183
Long-term borrowings 388,647 203,829
Mandatorily redeemable capital securities of subsidiary trust 29,177 29,090
Accrued expenses and other liabilities 10,102 10,199
--------------- ---------------
TOTAL LIABILITIES 1,565,224 1,247,178
STOCKHOLDERS' EQUITY
Common stock, no par value (24,000,000 shares authorized, 10,603,792 shares
issued at December 31, 2003, and
9,421,222 shares issued at December 31, 2002) 161,005 129,173
Accumulated comprehensive income, net of deferred income taxes 4,255 6,446
Retained earnings 7,781 12,650
Treasury stock, at cost (101,146 shares at December 31, 2003,
and 59,351 shares at December 31, 2002) (2,161) (1,086)
--------------- ---------------
TOTAL STOCKHOLDERS' EQUITY 170,880 147,183
--------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,736,104 $ 1,394,361
--------------- ---------------
END OF RELEASE