EXHIBIT 99
PEOPLES BANCORP INC. - P.O. BOX 738 - MARIETTA, OHIO - 45750
www.peoplesbancorp.com
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact:John W. Conlon
- --------------------- Chief Financial Officer
July 19, 2006 (740) 373-3155
PEOPLES BANCORP INC. REPORTS A 13% INCREASE
IN SECOND QUARTER EARNINGS PER SHARE
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MARIETTA, Ohio - Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today
reported diluted earnings per share of $0.52 for the second quarter of 2006 on
net income of $5.5 million. This compares to diluted earnings per share of $0.46
and net income of $4.9 million a year ago, representing a 13% increase. For the
second quarter of 2006, Peoples achieved a return on average equity of 11.88%
and return on average assets of 1.18%, versus 11.08% and 1.08%, respectively, a
year ago.
Peoples' higher second quarter earnings were due to lower operating
expenses combined with non-interest income growth. Second quarter 2005 results
also reflect pension settlement charges of $578,000 ($421,000 after-tax or $0.04
per diluted share) because lump sum payments to participants during the quarter
exceeded the allowable threshold under accounting principles generally accepted
in the United States. Comparatively, no settlement charges were incurred in
2006's second quarter.
"We are very pleased to report continued earnings growth in the second
quarter, despite challenging operating conditions," commented Mark F. Bradley,
President and CEO. "The flat yield curve makes it difficult to expand net
interest margin and emphasizes the importance of diversified revenue sources and
cost containment. In addition, loan and deposit growth were strong in the second
quarter."
For the six months ended June 30, 2006, Peoples' net income grew 20% to
$11.5 million, compared to $9.6 million in the first half of 2005, while diluted
earnings per share were $1.07 and $0.91, respectively, an 18% increase. As a
result of the higher net income, return on average equity and return on average
assets improved to 12.45% and 1.24%, respectively, from 10.97% and 1.07%,
respectively, for the same period a year ago. Increased net interest income and
non-interest revenue were key drivers of the year-to-date improvement.
Non-interest income, excluding gains and losses on security and asset
transactions, totaled $7.6 million for the second quarter of 2006, up 5% from
2005's second quarter, while on a year-to-date basis, non-interest income
increased 9%, totaling $15.7 million versus $14.3 million a year ago. Higher
insurance revenues and deposit account service charges accounted for most of the
growth.
Insurance and investment revenues totaled $2.5 million for the second
quarter of 2006, versus $2.3 million for 2005's second quarter, due to increased
sales of property and casualty insurance. For the six months ended June 30,
2006, insurance and investment revenues were up 19%, largely attributable to the
higher annual performance commission income received in the first quarter of
2006. Deposit account service charges grew 5% in the second quarter of 2006 and
7% on a year-to-date basis from higher overdraft and non-sufficient funds fees.
Non-interest expense totaled $12.6 million in the second quarter of
2006 compared to $13.4 million in the second quarter of 2005, due to lower
salaries and benefit costs, occupancy and equipment expense and intangible
amortization. Second quarter 2006 salaries and benefits were $6.4 million, down
11% from $7.2 million a year ago, with the non-recurrence of pension settlement
charges in the second quarter of 2005 accounting for much of this decline. Lower
depreciation expense from aged assets and decreased maintenance costs accounted
for the drop in occupancy and equipment costs for the second quarter.
Professional fees for the three months ended June 30, 2006, were up 21% from a
year ago, primarily attributable to ongoing regulatory compliance costs. On a
year-to-date basis, non-interest expense was down $0.6 million, or 2%, compared
to a year ago, the result of declines in salaries and benefit costs, occupancy
and equipment expense and intangible amortization.
"We are pleased with our improved operating efficiency, although the
extra pension costs last year were a significant contributor to lower expense,"
stated Bradley. "Good production in our fee-based businesses, including our
insurance agency, has helped boost non-interest income levels."
Net interest income totaled $13.3 million in the second quarter of
2006, up from $12.9 million in the second quarter of 2005, due to earning asset
growth from strong loan originations exceeding the increase in interest-bearing
liabilities. However, second quarter 2006 net interest income was negatively
impacted by $4 million of commercial loans from a single lending relationship
being placed on nonaccrual status, resulting in the reversal of accrued interest
totaling $149,000 in the second quarter of 2006. In addition, the current slope
of the yield curve and the repricing of maturing liabilities at higher rates and
aggressive loan and deposit pricing continue to challenge net interest income
and accounted for the 1% decline from the first quarter of 2006. These factors
also caused Peoples' net interest margin to drop to 3.29% for the quarter ended
June 30, 2006, from 3.40% for the first quarter of 2006 and 3.32% for the second
quarter of 2005. Through six months of 2006, net interest income totaled $26.8
million and net interest margin was 3.34%, versus $25.6 million and 3.29% for
the same period a year ago.
"In light of the ongoing interest rate pressures, net interest income
and margin trends were in line with our expectations for the second quarter,"
said Jack Conlon, Chief Financial Officer. "Changing the mix of earning assets
by funding loan growth with investment portfolio cash flows while working to
reduce the amount of wholesale funding remains a major part of our interest rate
management strategy to improve net interest income and margin. However, we
expect the current interest rate environment to limit the benefit from these
changes in the near term."
Portfolio loans grew $35.2 million, or 12% annualized, during the
second quarter, to $1.11 billion at June 30, 2006. Much of this increase was the
result of commercial loan originations, while consumer loan balances (primarily
indirect loans), excluding overdrafts, grew $4.0 million, representing the fifth
consecutive quarter of consumer loan growth. Since year-end 2005, total
portfolio loans have increased $42.3 million, from $1.07 billion.
"Strong loan growth occurred in the second quarter due to lending
opportunities in our more dynamic markets and lower than expected payoffs," said
Bradley. "In addition, our mortgage banking operations originated and sold
several loans, causing our servicing portfolio to grow to over $154 million at
June 30."
At June 30, 2006, nonperforming loans totaled $10.4 million, or 0.93%
of total loans, up from $6.0 million, or 0.56% at March 31, 2006 and $6.5
million, or 0.61% at year-end 2005, due primarily to the previously mentioned
$4 million of commercial loans being placed on nonaccrual status. As a result,
nonperforming assets comprised 0.56%, 0.33% and 0.37% of total assets for the
same periods, respectively. At June 30, 2006, the allowance for loan losses was
$15.3 million, or 147.6% of nonperforming loans, versus 242.7% and 225.2% at
March 31, 2006 and December 31, 2005, respectively. In the second quarter of
2006, the provision for loan losses was $573,000 compared to $268,000 last
quarter and $40,000 in the second quarter of 2005, with provisions relating to
overdrafts accounting for $250,000, $56,000 and $182,000, respectively.
Recoveries of previously charged-off loans exceeded charge-offs in the second
quarter of 2006, resulting in net recoveries of $86,000 compared to net
charge-offs of $514,000 a year ago and $316,000 in the first quarter of 2006.
"While nonperforming loans increased, much of the increase was related
to a single impaired commercial relationship identified in the second quarter,"
added Bradley. "This credit deterioration has been appropriately considered in
determining the adequacy of the allowance for loan losses, and management
anticipates no loss on the loans. Aside from this relationship, Peoples' overall
loan quality remained good in the second quarter, as reflected by recoveries
exceeding charge-offs."
At June 30, 2006, total deposits were $1.15 billion compared to $1.09
billion at year-end 2005, a 6% increase. Interest-bearing deposits grew $55.6
million to $982.1 million, due mostly to higher certificates of deposit balances
resulting from certain promotional offerings and an increase in brokered
deposits. Peoples also introduced a new money market product in mid-second
quarter, which has attracted over $9 million of new deposit relationships. As a
result of the deposit growth campaign initiated in late 2005 to attract core
deposits, non-interest-bearing deposits were up $7.2 million at June 30, 2006,
from $162.7 million at year-end 2005.
"Overall, we are pleased with second quarter results," summarized
Bradley. "Despite one credit relationship being placed on nonaccrual, we believe
any significant issues are isolated and overall loan quality remains good. Also,
operating efficiency improved, despite increased margin pressures. We look
forward to building on second quarter success in the remainder of 2006."
Peoples Bancorp Inc., a diversified financial products and services
company with $1.9 billion in assets, makes available a complete line of banking,
investment, insurance, and trust solutions through 49 locations and 35 ATMs in
Ohio, West Virginia and Kentucky. Peoples' financial service units include
Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and
Peoples Insurance Agency, Inc. Peoples' common shares are traded on the NASDAQ
Global Select Market under the symbol "PEBO", and Peoples is a member of the
Russell 3000 index of US publicly traded companies. Learn more about Peoples at
www.peoplesbancorp.com.
Conference Call to Discuss Earnings:
- -----------------------------------
Peoples will conduct a facilitated conference call to discuss second
quarter of 2006 results of operations today at 11:00 a.m. eastern daylight time,
with members of Peoples' executive management participating. Analysts, media and
individual investors are invited to participate in the conference call by
calling (877) 407-8033. A simultaneous Webcast of the conference call audio will
be available online via the Investor Relations section of Peoples' website,
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 in the "Investor Relations" section for one year.
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 "feel," "expect," "believe," "plan," "will," "would," "should," "could" and
similar expressions are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Rule 175 promulgated
thereunder, and Section 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 which may
increase significantly; (2) changes in the interest rate environment which may
adversely impact interest margins; (3) prepayment speeds, loan originations and
sale volumes, charge-offs and loan loss provisions may be less favorable than
expected; (4) general economic conditions may be 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 may adversely affect Peoples' business; (7)
changes and trends in the securities markets; (8) a delayed or incomplete
resolution of regulatory issues that could arise; (9) the impact of reputational
risk created by these developments on such matters as business generation and
retention, funding and liquidity; (10) the costs and effects of regulatory and
legal developments, including the outcome of regulatory or other governmental
inquiries and legal proceedings and results of regulatory examinations; 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"), including those risk factors included in the disclosure
under the heading "ITEM 1A. RISK FACTORS" of Peoples' Annual Report on Form 10-K
for the fiscal year ended December 31, 2005. Peoples does not commit to any
obligation to release revisions to these forward-looking statements or reflect
events or circumstances after the date of this release, except as required by
applicable law. Copies of documents filed with the SEC are available free of
charge at the SEC's website at http://www.sec.gov and/or from Peoples' website.
PEOPLES BANCORP INC. (NASDAQ: PEBO)
Financial Highlights (Unaudited)
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Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
(in $000's, except per share data) 2006 2006 2005 2006 2005
----------------------------------------- --------------------------
PER SHARE DATA Net income per share:
Basic $ 0.52 $ 0.56 $ 0.47 $ 1.09 $ 0.92
Diluted $ 0.52 $ 0.56 $ 0.46 $ 1.07 $ 0.91
Cash dividends declared per share $ 0.21 $ 0.20 $ 0.19 $ 0.41 $ 0.38
Book value per share $ 17.60 $ 17.51 $ 17.19 $ 17.60 $ 17.19
Tangible book value per share (a) $ 11.03 $ 11.00 $ 10.42 $ 11.03 $ 10.42
Closing stock price at end of period $ 29.84 $ 30.00 $ 26.75 $ 29.84 $ 26.75
Dividend payout as a percentage of net income 40.44% 35.74% 40.82% 38.01% 41.58%
Actual shares outstanding (net of treasury shares) 10,600,413 10,543,483 10,411,879 10,600,413 10,411,879
Weighted average shares outstanding:
Basic 10,591,926 10,530,444 10,405,989 10,561,355 10,412,552
Diluted 10,714,030 10,655,233 10,541,774 10,689,465 10,549,868
PERFORMANCE RATIOS (b)
Return on average equity 11.88% 13.02% 11.08% 12.45% 10.97%
Return on average assets 1.18% 1.30% 1.08% 1.24% 1.07%
Efficiency ratio (c) 56.25% 56.67% 62.22% 56.47% 60.92%
Net interest margin (fully-tax equivalent) 3.29% 3.40% 3.32% 3.34% 3.29%
Net loan charge-offs (recoveries) as a percentage of
average loans (0.03%) 0.12% 0.20% 0.04% 0.20%
------------ ------------- ------------ --------------------------
<FN>
(a) Excludes the balance sheet impact of intangible assets acquired through
acquisitions.
(b) Ratios are presented on an annualized basis.
(c) Non-interest expense (less intangible amortization) as a percentage of
fully tax-equivalent net interest income plus non-interest income (less
securities and asset disposal gains/losses).
</FN>
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
----------------------------- ----------------------------
Three Months Ended Six Months Ended
June 30, June 30,
(in $000's) 2006 2005 2006 2005
----------------------------- ----------------------------
Interest income $ 27,006 $ 23,397 $ 52,754 $ 46,040
Interest expense 13,701 10,481 25,946 20,412
-------------- -------------- ------------- -------------
Net interest income 13,305 12,916 26,808 25,628
Provision for loan losses 573 40 841 981
-------------- -------------- ------------- -------------
Net interest income after provision for loan losses 12,732 12,876 25,967 24,647
Net gain on securities transactions 4 3 4 236
Net gain on asset disposals 22 113 40 121
Non-interest income:
Service charges on deposits 2,604 2,472 5,065 4,746
Insurance and investment commissions 2,476 2,266 5,851 4,920
Fiduciary revenues 918 915 1,695 1,672
Electronic banking revenues 799 734 1,496 1,381
Business owned life insurance 399 437 805 891
Mortgage banking income 243 264 413 381
Other non-interest income 144 114 354 338
-------------- -------------- ------------- -------------
Total non-interest income 7,583 7,202 15,679 14,329
Non-interest expense:
Salaries and benefits 6,432 7,236 13,344 13,922
Net occupancy and equipment 1,210 1,338 2,452 2,627
Professional fees 663 550 1,275 1,215
Amortization of intangible assets 567 674 1,149 1,362
Data processing and software 476 463 944 924
Franchise taxes 446 418 891 829
Marketing 413 408 888 789
Bankcard costs 318 305 607 587
Other non-interest expense 2,032 2,048 4,073 3,932
-------------- -------------- ------------- -------------
Total non-interest expense 12,557 13,440 25,623 26,187
-------------- -------------- ------------- -------------
Income before income taxes 7,784 6,754 16,067 13,146
Income tax expense 2,248 1,876 4,600 3,576
-------------- -------------- ------------- -------------
Net income $ 5,536 $ 4,878 $ 11,467 $ 9,570
-------------- -------------- ------------- -------------
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
(in $000's) 2006 2006 2005 2006 2005
------------------------------------------ ---------------------------
PROVISION FOR LOAN LOSSES
Provision for Overdraft Privilege losses $ 250 $ 56 $ 181 $ 306 $ 212
Provision for (recovery of) other loan losses $ 323 $ 212 $ (141) $ 535 $ 769
------------- ------------ ------------- ------------ -------------
Total provision for loan losses $ 573 $ 268 $ 40 $ 841 $ 981
NET CHARGE-OFFS
Gross charge-offs $ 521 $ 653 $ 1,104 $ 1,174 $ 2,172
Recoveries 607 337 590 944 1,159
------------- ------------ ------------- ------------ -------------
Net (recoveries) charge-offs $ (86) $ 316 $ 514 $ 230 $ 1,013
Overdrafts $ 173 $ 104 $ 156 $ 277 $ 244
Consumer 42 (13) 45 28 106
Real estate (202) 90 126 (111) 441
Commercial (98) 137 201 39 244
Credit card (1) (2) (14) (3) (22)
------------- ------------ ------------- ------------ -------------
Total net (recoveries) charge-offs $ (86) $ 316 $ 514 $ 230 $ 1,013
------------- ------------ ------------- ------------ -------------
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
------------------ ------------------
(in $000's) June 30, December 31,
2006 2005
------------------ ------------------
ASSETS Cash and cash equivalents:
Cash and due from banks $ 36,136 $ 35,564
Interest-bearing deposits in other banks 994 1,084
Federal funds sold 450 3,000
------------------ ------------------
Total cash and cash equivalents 37,580 39,648
Available-for-sale investment securities, at estimated fair value
(amortized cost of $579,215 at June 30, 2006 and $591,022
at December 31, 2005) 568,806 589,313
Loans, net of unearned interest 1,114,213 1,071,876
Allowance for loan losses (15,331) (14,720)
------------------ ------------------
Net loans 1,098,882 1,057,156
Loans held for sale 533 1,103
Bank premises and equipment, net of accumulated depreciation 23,171 23,486
Business owned life insurance 47,799 46,993
Goodwill 61,258 59,767
Other intangible assets 8,365 9,513
Other assets 32,669 28,298
------------------ ------------------
TOTAL ASSETS $ 1,879,063 $ 1,855,277
------------------ ------------------
LIABILITIES
Non-interest-bearing deposits $ 169,903 $ 162,729
Interest-bearing deposits 982,128 926,557
------------------ ------------------
Total deposits 1,152,031 1,089,286
Federal funds purchased, securities sold under repurchase agreements,
and other short-term borrowings 228,568 173,696
Long-term borrowings 262,971 362,466
Junior subordinated notes held by subsidiary trusts 29,369 29,350
Accrued expenses and other liabilities 19,568 17,402
------------------ ------------------
TOTAL LIABILITIES 1,692,507 1,672,200
STOCKHOLDERS' EQUITY
Common stock, no par value (24,000,000 shares authorized, 10,879,023 shares
issued at June 30, 2006, and
10,869,655 shares issued at December 31, 2005) 162,420 162,231
Retained earnings 37,848 30,740
Accumulated comprehensive loss, net of deferred income taxes (6,770) (1,116)
Treasury stock, at cost (278,610 shares at June 30, 2006,
and 350,675 shares at December 31, 2005) (6,942) (8,778)
------------------ ------------------
TOTAL STOCKHOLDERS' EQUITY 186,556 183,077
------------------ ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,879,063 $ 1,855,277
------------------ ------------------
PEOPLES BANCORP SELECTED FINANCIAL INFORMATION
---------------- ---------------- ---------------- ----------------
(in $000's, end of period) June 30, March 31, December 31, June 30,
2006 2006 2005 2005
---------------- ---------------- ---------------- ----------------
LOAN PORTFOLIO
Commercial, mortgage $ 484,486 $ 466,707 $ 504,923 $ 474,344
Commercial, other 187,296 182,801 136,331 133,537
Real estate, construction 66,627 52,698 50,745 35,950
Real estate, mortgage 305,199 310,048 316,081 330,881
Consumer 70,605 66,773 63,796 59,365
---------------- ---------------- ---------------- ----------------
Total loans $ 1,114,213 $ 1,079,027 $ 1,071,876 $ 1,034,077
DEPOSIT BALANCES
Interest-bearing deposits:
Retail certificates of deposit $ 499,448 $ 493,235 $ 465,148 $ 451,522
Interest-bearing transaction accounts 177,905 183,411 178,030 184,308
Money market deposit accounts 123,513 106,367 110,372 115,666
Savings accounts 123,293 129,556 131,221 145,806
Brokered certificates of deposits 57,969 60,255 41,786 44,850
---------------- ---------------- ---------------- ----------------
Total interest-bearing deposits 982,128 972,824 926,557 942,152
Non-interest-bearing deposits 169,903 166,782 162,729 153,270
---------------- ---------------- ---------------- ----------------
Total deposits $ 1,152,031 $ 1,139,606 $ 1,089,286 $ 1,095,422
ASSET QUALITY
Nonperforming assets:
Loans 90 days or more past due $ 842 $ - $ 251 $ 475
Nonaccrual loans 9,548 6,045 6,284 7,173
---------------- ---------------- ---------------- ----------------
Total nonperforming loans 10,390 6,045 6,535 7,648
Other real estate owned 130 38 308 353
---------------- ---------------- ---------------- ----------------
Total nonperforming assets $ 10,520 $ 6,083 $ 6,843 $ 8,001
Allowance for loan losses as a percent of
nonperforming loans 147.6% 242.7% 225.2% 192.6%
Nonperforming loans as a percent of total loans 0.93% 0.56% 0.61% 0.74%
Nonperforming assets as a percent of total assets 0.56% 0.33% 0.37% 0.44%
Nonperforming assets as a percent of total loans and
other real estate owned 0.94% 0.56% 0.64% 0.77%
Allowance for loan losses as a percent of total loans 1.38% 1.36% 1.37% 1.42%
REGULATORY CAPITAL (a)
Tier 1 risk-based capital 11.95% 11.97% 11.60% 11.21%
Total risk-based capital ratio (Tier 1 and Tier 2) 13.26% 13.26% 12.91% 12.57%
Leverage ratio 8.46% 8.40% 8.10% 7.78%
Tier 1 capital $ 153,806 $ 150,032 $ 144,994 $ 135,081
Total capital (Tier 1 and Tier 2) $ 170,650 $ 166,200 $ 161,226 $ 151,480
Total risk-weighted assets $ 1,286,754 $ 1,253,328 $ 1,249,378 $ 1,205,305
---------------- ---------------- ---------------- ----------------
<FN>
(a) June 30, 2006, data based on preliminary analysis and is subject to
revision.
</FN>
PEOPLES BANCORP INC. SUPPLEMENTAL INFORMATION
---------------- ---------------- ---------------- ----------------
(in $000's, except per share data) June 30, March 31, December 31, June 30,
2006 2006 2005 2005
---------------- ---------------- ---------------- ----------------
Trust assets under management $ 711,135 $ 684,659 $ 658,708 $ 631,214
Mortgage loans serviced for others $ 154,447 $ 147,389 $ 144,339 $ 132,026
Employees (full-time equivalent) 537 525 531 543
Announced treasury share plans: (a)
Total shares authorized for plan 425,000 425,000 525,000 525,000
Shares purchased 14,000 - - -
Average price $ 28.00 $ - $ - $ -
---------------- ---------------- ---------------- ----------------
<FN>
(a) 2006 data reflects 2006 Stock Repurchase Program of 425,000 shares. 2005
data reflects 2005 Stock Repurchase Program of 525,000 shares. The amount of
shares purchased for treasury and average price paid are presented for the
three-month period ended on the date indicated.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST INCOME
----------------------------------------------------------------------------------------------
Three Months Ended
----------------------------------------------------------------------------------------------
June 30, 2006 March 31, 2006 June 30, 2005
-------------------------------- ------------------------------ ----------------------------
(in $000's) Balance Income/ExpeYield/ Balance Income/ExpYield/ Balance Income/ExpeYield/
Cost Cost Cost
----------------------------------------------------------------------------------------------
Short-term investments $ 3,747 $ 38 4.06 % $ 3,972 $ 40 4.05 % $ 3,051 $ 18 2.49 %
Investment securities (a) 581,924 7,381 5.07 587,564 7,141 4.86 597,625 7,074 4.73
Gross loans (a) 1,104,839 20,013 7.26 1,072,563 18,997 7.16 1,024,795 16,706 6.52
Allowance for loan losses (15,008) (14,834) (15,447)
------------------------------- ------------------------------- -----------------------------
Total earning assets 1,675,502 27,431 6.56 % 1,649,265 26,178 6.40 % 1,610,024 23,798 5.92 %
Intangible assets 68,557 68,980 70,069
Other assets 132,094 129,345 130,677
------------ ------------ ------------
Total assets 1,876,153 1,847,590 1,810,770
Interest-bearing deposits:
Savings 125,597 203 0.65 % 127,596 198 0.63 % 148,284 265 0.72 %
Interest-bearing demand deposits 290,323 1,755 2.42 289,206 1,596 2.24 302,401 1,365 1.81
Time deposits 556,319 5,476 3.95 538,934 4,848 3.65 495,884 3,959 3.20
------------------------------- ------------------------------- -----------------------------
Total interest-bearing deposits 972,239 7,434 3.07 955,736 6,642 2.82 946,569 5,589 2.37
Short-term borrowings 227,983 2,756 4.84 165,332 1,767 4.33 101,387 726 2.87
Long-term borrowings 305,717 3,510 4.59 361,385 3,836 4.25 411,557 4,166 4.05
------------------------------- ------------------------------- -----------------------------
Total borrowed funds 533,700 6,266 4.66 526,717 5,603 4.28 512,944 4,892 3.80
------------------------------- ------------------------------- -----------------------------
Total interest-bearing 1,505,939 13,700 3.64 % 1,482,453 12,245 3.34 % 1,459,513 10,481 2.87 %
liabilities
Non-interest-bearing deposits 167,918 164,722 158,774
Other liabilities 15,406 15,715 15,900
------------ ------------ ------------
Total liabilities 1,689,263 1,662,890 1,634,187
Stockholders' equity 186,890 184,700 176,583
------------ ------------ ------------
Total liabilities and equity $ 1,876,153 $ 1,847,590 $ 1,810,770
Net interest income/spread (a) $ 13,731 2.92 % $ 13,933 3.06 % $ 13,317 3.05 %
Net interest margin (a) 3.29 % 3.40 % 3.32 %
----------------------------------------------------------------------------------------------
<FN>
(a) Information presented on a fully tax-equivalent basis.
</FN>
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Six Months Ended
-----------------------------------------------------------------
June 30, 2006 June 30, 2005
-------------------------------- -------------------------------
(in $000's) Balance Income/ExpeYield/ Balance Income/ExYield/
Cost Cost
-----------------------------------------------------------------
Short-term investments $ 3,859 $ 78 4.06 % $ 2,809 $ 30 2.17 %
Investment securities (a) 584,728 14,521 4.97 598,541 13,773 4.60
Gross loans (a) 1,088,791 39,010 7.21 1,024,313 33,033 6.45
Allowance for loan losses (14,922) (15,150)
-------------------------------- -------------------------------
Total earning assets 1,662,456 53,609 6.48 % 1,610,513 46,836 5.84 %
Intangible assets 68,767 70,340
Other assets 130,727 129,188
------------ -------------
Total assets 1,861,950 1,810,041
Interest-bearing deposits:
Savings 126,591 401 0.64 % 151,297 556 0.74 %
Interest-bearing demand deposits 289,768 3,352 2.33 290,924 2,372 1.64
Time deposits 547,675 10,324 3.80 495,938 7,766 3.16
-------------------------------- -------------------------------
Total interest-bearing deposits 964,034 14,077 2.94 938,159 10,694 2.30
Short-term borrowings 196,830 4,523 4.63 96,692 1,272 2.65
Long-term borrowings 333,397 7,346 4.44 425,463 8,446 4.00
-------------------------------- -------------------------------
Total borrowed funds 530,227 11,869 4.47 522,155 9,718 3.73
-------------------------------- -------------------------------
Total interest-bearing liabilities 1,494,261 25,946 3.49 % 1,460,314 20,412 2.81 %
Non-interest-bearing deposits 166,329 157,187
Other liabilities 15,559 16,543
------------ -------------
Total liabilities 1,676,149 1,634,044
Stockholders' equity 185,801 175,997
------------ -------------
Total liabilities and equity $ 1,861,950 $ 1,810,041
Net interest income/spread (a) $ 27,663 2.99 % $ 26,424 3.03 %
Net interest margin (a) 3.34 % 3.29 %
-----------------------------------------------------------------
<FN>
(a) Information presented on a fully tax-equivalent basis.
</FN>
END OF RELEASE