EXHIBIT 99
OAK HILL
FINANCIAL, INC.
For Immediate Release
Thursday, October 14, 2004
Contact: David G. Ratz, Executive Vice President & COO
(740) 286-3283
Oak Hill Financial Reports 6% Increase in 3rd Quarter Earnings
Jackson, Ohio -- Oak Hill Financial, Inc. (Nasdaq NMS: OAKF) today reported net
earnings from operations for the three months ended September 30, 2004 of
$3,307,000, or $.58 per diluted share, which was in line with analysts'
consensus estimate (source: Thomson Financial as reported by nasdaq.com). The
third quarter 2004 earnings represent an increase of 6.0% over the $3,121,000,
or $.55 per diluted share, in net earnings from operations that the company
recorded for the quarter ended September 30, 2003.
For the nine months ended September 30, 2004, Oak Hill Financial recorded net
earnings from operations of $9,702,000, or $1.70 per diluted share, an increase
of 8.5% over the $8,942,000, or $1.59 per diluted share, in net earnings from
operations for the first nine months of 2003.
The operating earnings for the third quarter and first nine months of 2004
exclude $93,000 in after-tax expenses related to the company's acquisition of
Ripley National Bank, which was completed on October 9, 2004. The 2003 earnings
have been adjusted for non-recurring tax savings of $133,000 and $399,000,
respectively, resulting from a one-time tax savings of $531,000 for the full
year 2003. Including the merger-related expense, the company's net income was
$3,214,000, or $.57 per diluted share, for the third quarter of 2004 and
$9,609,000, or $1.69 per diluted share, for the first nine months of 2004. For
the third quarter and first nine months of 2003, net income including the
one-time tax savings was $3,254,000, or $.57 per diluted share, and $9,341,000,
or $1.66 per diluted share, respectively.
Oak Hill Financial reached a milestone in the third quarter, crossing the $1
billion threshold in late August. The company's total assets at September 30,
2004 were $1.02 billion, an increase of 12.6% over the $904.0 million in total
assets recorded at September 30, 2003, and 3.8% over the $980.8 million in
assets on the books at June 30, 2004. Net loans at September 30, 2004 were
$875.1 million, up 12.4% over the $778.5 million in net loans at September 30,
2003, and 3.5% over the $845.9 million in net loans at the end of the second
quarter of 2004.
Commenting on Oak Hill Financial's third quarter results, President and CEO R.
E. Coffman, Jr. said, "Overall, we remain pleased with our performance. The loss
of revenues from the slowdown in mortgage originations continues to be a
challenge, but we have made great progress offsetting that loss with strong loan
growth and a substantial increase in net interest income. The net interest
margin increased on both a year-over-year and linked-quarter basis, and we
posted linked-quarter increases in almost every loan category, with commercial
and home equity loans again leading the way. Also, our Oak Hill Banks subsidiary
made its first investment in its Community Development Corporation under the New
Markets Tax Credit allocation that we were awarded in the second quarter. This
investment will greatly benefit a nine-county economically distressed area in
Southern Ohio and allowed us to realize a $250,000 tax benefit in the third
quarter."
"Our nonperforming loans had dipped in the second quarter but moved up again in
the third quarter," Coffman continued. "However, there is more to the story than
just the overall ratio. Our non-accrual loans actually declined considerably
during the third quarter. While loans 90 days past due showed a substantial
increase, the increase was due to a single borrower who has since made payments
to move his loan off nonperforming status. Also, while we are not pleased with
the overall increase, the nonperforming ratios are still at the lower end of the
range where we've been for the past couple of years, and we do not expect any
further deterioration. Charge-offs were also higher than normal as we continued
to take an aggressive stance with problem loans, although year-to-date
charge-offs are still in line with our expectations."
Addressing the outlook for Oak Hill Financial, Coffman said, "We believe the
next couple of years should be very good for Oak Hill Financial. We just
completed the acquisition of Ripley National Bank, and we announced on October
12 the signing of a definitive merger agreement with Lawrence Financial
Holdings. The Ripley transaction brought us about $50 million in assets and
entry into Brown County, Ohio. Lawrence Financial will add approximately $120
million in assets and vault us from the eighth to second in market share in
Lawrence County, Ohio. Both transactions help us fill out our geographic
footprint and, combined, are expected to be strongly accretive, particularly in
the second year and beyond. Add to that our continued loan growth and the
benefits we are experiencing from the recent rate increases, and we think the
outlook for our company is positive."
Key Issue Review and Outlook
Net Interest Margin - Net interest margin for the third quarter was 4.08%, as
compared to the 4.03% posted in the third quarter of 2003 and the 4.06% recorded
for the second quarter of 2004. The margin was consistent with management's
expectations and was primarily the result of higher asset yields, particularly
on commercial real estate loans and investments. Management continues to believe
that the margin can be maintained at a level sufficient for earnings to be
within the company's estimated ranges for 2004 and 2005. The recent increases in
interest rates contribute to margin stability, and any subsequent increases are
expected to have a positive impact as well.
Operating Expenses - Non-interest expenses from operations were 2.64% of average
assets for the third quarter of 2004, an improvement over the 2.79% for the
third quarter of 2003 and 2.73% for the second quarter of 2004. Management
attributes the improvement to company-wide efforts to "grow into" the company's
expense base. This is evidenced by an increase in non-interest expense of only
$11,000 from the second quarter to the third quarter of 2004 while assets
increased over $37 million in the same period. This is further reflected in the
company's efficiency ratio, which was 52.5% for the third quarter of 2004, as
compared to 53.8% for the second quarter.
Non-Interest Income - Non-interest income, including gain on sale of loans, was
$2,414,000 in the third quarter, a decrease of 27.4% from the third quarter of
2003. Excluding a $1.0 million year-over-year decline in gain on sale of loans
resulting from the end of the refinancing boom, non-interest income from other
sources increased 5.7%. Among the non-interest income categories showing
significant growth both year-over-year and on a linked quarter basis were
service charges on deposits and real estate loan servicing fees. Also, the third
quarter saw a decline in amortization and impairment of mortgage servicing
rights, which the company accounts for as a reduction in other non-interest
income. Offsetting these improvements was an increase in losses on other assets
sold resulting from the disposition of OREO property.
Asset Quality - At the end of the third quarter, the nonperforming loans/total
loans and nonperforming assets/total assets ratios were 0.93% and 0.87%,
respectively, an increase from the 0.76% and 0.72%, respectively, recorded at
June 30, 2004. However, as mentioned in Mr. Coffman's comments above, a single
$1.9 million loan that became 90 days past due during the third quarter was
responsible for the uptick in the nonperforming ratios. Payments on this loan,
which accounted for 0.23% and 0.21% of the nonperforming loans and nonperforming
assets ratios, respectively, made subsequent to the end of the quarter brought
the loan to less than 60 days past due. Further payments are anticipated during
the fourth quarter that will move the loan toward current status, and the
company anticipates no loss.
Other than the loan referenced above, the company's next two largest
nonperforming loans at September 30 contributed 0.07% and 0.05%, respectively,
to the nonperforming loan ratio. Both are commercial real estate loans. The
other nonperforming loans are a mix of commercial real estate, commercial,
residential real estate and consumer loans.
Management continues to aggressively pursue resolution of problem loans in its
commercial and consumer portfolios. As a result, the company's net charge-offs
(non-annualized) were 0.07% of total loans for the quarter, as compared to 0.06%
in the second quarter. However, the annualized rate through nine months of 0.23%
remains consistent with management's objective of maintaining net charge-offs in
the 0.20% range for the full year.
Consistent with generally accepted accounting principles and regulatory
guidelines, the company uses various formulas to determine its allowance for
loan and lease losses (ALLL). The methodology takes into consideration not only
charge-offs but also the rated quality of the company's loans based on loan
review grades and the types and amounts of loans comprising the portfolio, while
allowing limited discretion by management to make adjustments based on near-term
economic conditions. On this basis, the ALLL/total loans ratio was 1.31% at
September 30, 2004, as compared to 1.32% as June 30. However, the actual dollar
amount of the allowance increased from $11.3 million to $11.6 million.
Overall Strategy - Oak Hill Financial will continue to pursue revenue growth
through originating adjustable-rate commercial loans, commercial real estate
loans, and residential mortgage loans; fixed-rate residential mortgage loans and
SBA loans for sale in the secondary market; and consumer loans. Management
continues to believe that commercial and commercial real estate loans hold the
greatest potential for growth and margin improvement within its bank subsidiary.
Non-interest income growth and diversification of non-interest revenues are also
major elements in the company's strategy.
Asset/Loan Growth - The company's total assets grew at a 15.2% annual rate
during the third quarter, while loans increased at an annualized 13.8%, with
commercial loans and home equity lines of credit being the primary contributors
to the quarter's growth. Both the asset and loan growth rates were considerably
higher in the third quarter than in the first two quarters of 2004, and
management is hopeful that growth can be sustained at or near these levels
through the fourth quarter of 2004 and into 2005.
Expansion - In addition to the completion of the Ripley National Bank merger
which added banking offices in Ripley and Georgetown, Ohio, the company's Oak
Hill Banks subsidiary will open a branch office in the fourth quarter in
Chillicothe, Ohio. This will be the company's third banking office in
Chillicothe and its fourth in Ross County, which is contiguous to the company's
home county of Jackson.
Estimate - The company has narrowed the range of its operating earnings estimate
for the full year 2004 to $2.29 to $2.32 per share. For 2005, operating earnings
are currently estimated to be in the $2.60 to $2.70 per share range.
Oak Hill Financial is a financial holding company headquartered in Jackson,
Ohio. Its subsidiaries, Oak Hill Banks and Action Finance Company, operate 29
full-service banking offices, four bank loan production offices, and six
consumer finance offices in 16 counties across southern and central Ohio. A
third subsidiary, Oak Hill Financial Insurance Agency, provides group health
plans and other insurance services throughout the same region. The company also
holds 49% of Oak Hill Title Agency, LLC, which provides title services for
commercial and residential real estate transactions.
Forward-Looking Statements Disclosure
This release contains certain forward-looking statements related to the future
performance and condition of Oak Hill Financial, Inc. These statements, which
are subject to numerous risks and uncertainties, are presented in good faith
based on the company's current condition and management's understanding,
expectations, and assumptions regarding its future prospects as of the date of
this release. Actual results could differ materially from those projected or
implied by the statements contained herein. The factors that could affect the
company's future results are set forth in the periodic reports and registration
statements filed by the company with the Securities and Exchange Commission.
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At September 30,
(In thousands) 2004 2003
- --------------------------------------------------------------------------------
SUMMARY OF FINANCIAL CONDITION
Total assets $1,017,917 $ 904,006
Interest-bearing deposits and federal funds sold 1,317 1,100
Investment securities 82,256 76,608
Loans receivable - net 875,135 778,484
Deposits 790,656 684,865
Federal Home Loan Bank advances and other borrowings 138,797 139,969
Stockholders' equity 84,889 76,503
The Company discloses net earnings, diluted earnings per share and certain
performance ratios adjusted for non-recurring items. Management believes that
presenting this information is an additional measure of performance that
investors can use to compare operating results between reporting periods. These
measures should not be considered an alternative to measurements required by
accounting principles generally accepted in the United States of America ("U.S.
GAAP"). In accordance with Securities and Exchange Commission Regulation G,
reconciliation of the Company's U.S. GAAP information to its operating
information is presented in the table below.
At or For the At or For the
three months ended nine months ended
September 30, September 30,
(In thousands, except share data) 2004 2003 2004 2003
- -------------------------------------------------------------------------------------------
RECONCILIATION OF NON-GAAP NET EARNINGS,
DILUTED EARNINGS PER SHARE AND OTHER PERFORMANCE MEASURES
Net earnings (U.S.GAAP) $ 3,214 $ 3,254 $ 9,609 $ 9,341
Non-recurring items, net of tax:
Merger-related expenses 93 -- 93 --
Reduction in tax expense -- (133) -- (399)
- -------------------------------------------------------------------------------------------
Net earnings from operations $ 3,307 $ 3,121 $ 9,702 $ 8,942
===========================================================================================
Diluted earnings per share (U.S. GAAP) $ 0.57 $ 0.57 $ 1.69 $ 1.66
Non-recurring items, net of tax:
Merger-related expenses 0.01 -- 0.01 --
Reduction in tax expense -- (0.02) -- (0.07)
- -------------------------------------------------------------------------------------------
Diluted earnings per share from operations $ 0.58 $ 0.55 $ 1.70 $ 1.59
===========================================================================================
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At or For the At or For the
three months ended nine months ended
September 30, September 30,
(In thousands, except share data) 2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------------------
RECONCILIATION OF NON-GAAP NET EARNINGS,
DILUTED EARNINGS PER SHARE AND OTHER PERFORMANCE MEASURES (continued)
Non-interest expense (U.S. GAAP) $ 6,745 $ 5,946 $ 19,669 $ 17,908
Non-recurring items:
Merger-related expenses (143) -- (143) --
Reduction in tax expense -- 202 -- 607
- -------------------------------------------------------------------------------------------------------------------------
Non-interest expense from operations $ 6,602 $ 6,148 $ 19,526 $ 18,515
=========================================================================================================================
SUMMARY OF OPERATIONS (1)(2)
Interest income $ 14,933 $ 13,450 $ 43,495 $ 40,966
Interest expense 5,230 5,003 15,106 15,464
- -------------------------------------------------------------------------------------------------------------------------
Net interest income 9,703 8,447 28,389 25,502
Provision for losses on loans 1,002 966 2,285 2,506
- -------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for losses on loans 8,701 7,481 26,104 22,996
Gain on sale of loans 454 1,473 1,354 3,691
Insurance commissions 712 743 2,224 2,136
Other non-interest income 1,248 1,111 3,952 2,956
General, administrative and other expense 6,602 6,148 19,526 18,515
- -------------------------------------------------------------------------------------------------------------------------
Earnings before federal income taxes 4,513 4,660 14,108 13,264
Federal income taxes 1,206 1,539 4,406 4,322
- -------------------------------------------------------------------------------------------------------------------------
Net earnings from operations $ 3,307 $ 3,121 $ 9,702 $ 8,942
=========================================================================================================================
SELECTED PERFORMANCE RATIOS FROM OPERATIONS (1)(2)(5)
Diluted earnings per share (4) $ 0.58 $ 0.55 $ 1.70 $ 1.59
- -------------------------------------------------------------------------------------------------------------------------
Return on average assets 1.32% 1.42% 1.33% 1.40%
Return on average equity 15.80% 16.47% 15.85% 16.58%
Non-interest expense to average assets 2.64% 2.79% 2.68% 2.90%
Efficiency ratio 52.47% 52.13% 53.69% 53.80%
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At or For the At or For the
three months ended nine months ended
September 30, September 30,
(In thousands, except share data) 2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------------
PER SHARE INFORMATION (U.S. GAAP)
Basic earnings per share (3) $ 0.58 $ 0.59 $ 1.73 $ 1.71
===================================================================================================================
Diluted earnings per share (4) $ 0.57 $ 0.57 $ 1.69 $ 1.66
===================================================================================================================
Dividends per share (3) $ 0.15 $ 0.13 $ 0.45 $ 0.39
===================================================================================================================
Book value per share $ 15.31 $ 13.83
===================================================================================================================
OTHER STATISTICAL AND OPERATING DATA (U.S. GAAP) (5)
Return on average assets 1.29% 1.48% 1.32% 1.47%
Return on average equity 15.35% 17.18% 15.69% 17.32%
Non-interest expense to averageassets 2.70% 2.70% 2.70% 2.81%
Net interest margin (fully-taxable equivalent) 4.08% 4.03% 4.09% 4.20%
Total allowance for losses on loans to non-performing loans 141.47% 127.88%
Total allowance for losses on loans to total loans 1.31% 1.31%
Non-performing loans to total loans 0.93% 1.02%
Non-performing assets to total assets 0.87% 0.95%
Net charge-offs to average loans (actual for the period) 0.07% 0.06% 0.17% 0.17%
Net charge-offs to average loans (annualized) 0.29% 0.24% 0.23% 0.23%
Equity to assets at period end 8.34% 8.46%
Efficiency ratio 53.60% 50.42% 54.09% 52.03%
- --------------------------------------------------------------------------------------------------------------------
(1) Includes $202,500 and $607,500, pre-tax reduction in tax expense for the
three and nine months ended September 30, 2003, respectively, resulting
from a one-time pre-tax savings of $810,000 for 2003.
(2) Does not include $142,500, pre-tax, merger-related charges for the three
and nine months ended September 30, 2004.
(3) Based on 5,543,405, 5,517,166, 5,550,921 and 5,467,958 weighted-average
shares outstanding for the three and nine months ended September 30, 2004
and 2003, respectively.
(4) Based on 5,679,855, 5,683,867, 5,694,877 and 5,613,075 weighted-average
shares outstanding for the three and nine months ended September 30, 2004
and 2003, respectively.
(5) Annualized where appropriate.
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At September 30,
(In thousands, except sharedata) 2004 2003
- ----------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL
BALANCE SHEET - ASSETS
Cash and cash equivalents 21,725 23,187
Trading account securities -- --
Securities available for sale 78,611 72,945
Securities held to maturity 3,645 3,663
Other securities 6,183 5,938
Total securities 88,439 82,546
Total cash and securities 110,164 105,733
Loans and leases held for investment (1) 883,346 784,324
Loans and leases held for sale (1) 268 1,738
Total loans and leases (1) 883,614 786,062
Allowance for losses on loans 11,633 10,335
Goodwill 413 413
Other intangible assets -- --
Total intangible assets 413 413
Mortgage servicing rights 3,154 2,757
Purchased credit card relationships -- --
Other real estate owned 666 475
Bank owned life insurance 10,000
Other assets 21,539 18,901
Total assets 1,017,917 904,006
BALANCE SHEET - LIABILITIES
Deposits 790,656 684,865
Borrowings 128,797 134,969
Other liabilities 3,567 2,661
Total liabilities 923,020 822,495
Redeemable preferred stock -- --
Trust preferred securities 10,000 5,000
Minority interests 8 8
Other mezzanine level items -- --
Total mezzanine level items 10,008 5,008
Total liabilities and mezzanine level items 933,028 827,503
BALANCE SHEET - EQUITY
Preferred equity -- --
Common equity 84,889 76,503
MEMO ITEM: Net unrealized gain (loss) on securities
available for sale, net of tax 901 698
End of period shares outstanding (2) 5,544,514 5,531,678
Options outstanding 464,733 550,030
Treasury shares held by the Company 109,069 62,550
- ----------------------------------------------------------------------------------
(1) Data is net of unearned interest, gross of allowance for losses on loans
(2) Excludes treasury shares
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At or For the At or For the
three months ended nine months ended
September 30, September 30,
(In thousands, except share data) 2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL (continued)
Repurchase plan announced? No No Yes No
Number of shares to be repurchased in plan N/A N/A 300,000 N/A
Number of shares repurchased during the period -- N/A 134,936 N/A
Average price of repurchased shares -- N/A $ 32.38 N/A
INCOME STATEMENT
Interest income 14,933 13,450 43,495 40,966
Interest expense 5,230 5,003 15,106 15,464
Net interest income 9,703 8,447 28,389 25,502
Net interest income (fully-taxable equivalent) 9,900 8,575 28,839 25,904
Provision for losses on loans 1,002 966 2,285 2,506
Non-recurring income -- -- -- --
Non-recurring expense
Merger-related expenses 143 -- 143 --
Trading account income
Foreign exchange income -- -- -- --
Trust income -- -- -- --
Insurance commissions 712 743 2,224 2,136
Service charges on deposits 927 870 2,637 2,179
Gain on sale of loans 454 1,473 1,354 3,691
Gain on investment securities transactions 74 110 276 257
Other non-interest income 247 131 1,039 520
Total non-interest income 2,414 3,327 7,530 8,783
Employee compensation and benefits 3,665 3,598 10,743 10,772
Occupancy and equipment expense 826 702 2,446 2,161
Foreclosed property expense
Amortization of intangibles
Other general, administrative and other expense 2,111 1,646 6,337 4,975
Total non-interest expenses 6,602 5,946 19,526 17,908
Net income before taxes 4,370 4,862 13,965 13,871
Federal income taxes 1,156 1,608 4,356 4,530
Net income before extraordinary items 3,214 3,254 9,609 9,341
Extraordinary items
Net income 3,214 3,254 9,609 9,341
CHARGE-OFFS
Loan charge-offs 783 575 1,957 1,643
Recoveries on loans 138 121 468 383
Net loan charge-offs 645 454 1,489 1,260
AVERAGE BALANCE SHEET
Average loans and leases 872,202 762,666 851,543 738,410
Average other earning assets 92,507 83,632 91,275 87,562
Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At or For the At or For the
three months ended nine months ended
September 30, September 30,
(In thousands, except share data) 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL (continued)
AVERAGE BALANCE SHEET (continued)
Average total earning assets 964,709 846,298 942,818 825,972
Average total assets 994,237 872,729 971,656 852,344
Average non-interest bearing deposits 70,780 63,607 69,406 61,639
Average total time deposits 508,413 422,351 496,657 418,219
Average other interest-bearing deposits 206,731 192,719 201,374 187,423
Average total interest-bearing deposits 715,144 615,070 698,031 605,642
Average borrowings 124,430 115,758 120,701 109,922
Average interest-bearing liabilities 839,574 730,828 818,732 715,564
Average preferred equity -- -- -- --
Average common equity 83,275 75,165 81,783 72,092
ASSET QUALITY AND OTHER DATA
Non-accrual loans 5,104 7,737
Renegotiated loans -- --
Loans 90+ days past due and still accruing 3,119 345
Total non-performing loans 8,223 8,082
Other real estate owned 666 475
Total non-performing assets 8,889 8,557
ADDITIONAL DATA
1 - 4 family mortgage loans serviced for others 252,859 253,251
Proprietary mutual fund balances -- --
Fair value of securities held to maturity 3,919 3,517
Full-time equivalent employees 359 333
Total number of full-service banking offices 27 25
Total number of bank and thrift subsidiaries 1 1
Total number of ATMs 31 28
LOANS RECEIVABLE
1 - 4 family residential 179,504 171,516
Home Equity 41,002 32,030
Multi-family residential 24,007 24,354
Commercial real estate 327,759 292,542
Construction and land development 59,222 52,245
Commercial and other 173,900 139,221
Consumer 77,870 74,288
Credit cards 1,687 1,444
- --------------------------------------------------------------------------------------------------------------
Loans receivable - gross 884,951 787,640
Unearned interest (1,337) (1,578)
- --------------------------------------------------------------------------------------------------------------
Loans receivable - net of unearned interest 883,614 786,062
Allowance for losses on loans (11,633) (10,335)
- --------------------------------------------------------------------------------------------------------------
Loans receivable - net (1) 871,981 775,727
==============================================================================================================
(1) Does not include mortgage servicing rights. Oak Hill Financial, Inc.
SELECTED CONSOLIDATED FINANCIAL INFORMATION (unaudited)
October 14, 2004 Press Release
At or For the At or For the
three months ended nine months ended
September 30, September 30,
(In thousands, except share data) 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DETAIL (continued)
DEPOSITS
Transaction accounts
Non-interest bearing 68,974 70,588
Interest-bearing 74,503 62,135
Savings accounts 49,668 49,390
Money market deposit accounts 81,602 81,001
Other core interest-bearing 343,150 309,339
- ----------------------------------------------------------------------------------------------------------------------
Total core deposit accounts 617,897 572,453
Non-core interest-bearing 172,759 112,412
- ----------------------------------------------------------------------------------------------------------------------
Total deposits 790,656 684,865
======================================================================================================================
Yield/average earning assets (fully-taxable equivalent) 6.24% 6.38% 6.23% 6.70%
Cost/average earning assets 2.16% 2.35% 2.14% 2.50%
- ----------------------------------------------------------------------------------------------------------------------
Net interest income (fully-taxable equivalent) 4.08% 4.03% 4.09% 4.20%
======================================================================================================================
NEW MARKETS TAX CREDIT
Qualified equity investment in Oak Hill Banks Community Development Corp. 5,000 --
======================================================================================================================
Tax benefit:
Credit Tax Expense
Year Percentage Reduction
- --------------------------------------------------------------------------------
2004 5% 250
2005 5% 250
2006 5% 250
2007 6% 300
2008 6% 300
2009 6% 300
2010 6% 300
- -------------------------------------------------------------------------------
Totals 39% 1,950
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