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