EXHIBIT 99.1
------------
FOR IMMEDIATE RELEASE
---------------------
JULY 24, 2003
Contacts: Melanie J. Dressel, President and
Chief Executive Officer
(253) 305-1911
Gary R. Schminkey, Executive Vice President
and Chief Financial Officer
(253) 305-1966
COLUMBIA BANKING SYSTEM ANNOUNCES SOUND EARNINGS
FOR SECOND QUARTER 2003
SECOND QUARTER HIGHLIGHTS
o NET INCOME OF $4.8 MILLION, UP 51% FROM 2ND QUARTER 2002.
o DILUTED EARNINGS PER SHARE OF $0.35, UP 46% FROM THE PRIOR YEAR.
o NONINTEREST INCOME UP 24% AND 30% COMPARED TO 2ND QUARTER AND THE
FIRST 6 MONTHS OF 2002, RESPECTIVELY.
o AVERAGE CORE DEPOSIT GROWTH OF 15%, COMPARED WITH THE PRIOR YEAR.
o TOTAL NONPERFORMING ASSETS DECREASED 61% FROM JUNE 30, 2002; ALLOWANCE
FOR LOAN LOSSES TO NONPERFORMING ASSETS IMPROVED TO 210%.
o ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS IMPROVED TO 1.82% FROM 1.36%
A YEAR AGO.
o RETURN ON EQUITY AND RETURN ON ASSETS IMPROVED TO 13.61% AND 1.12%,
RESPECTIVELY, IN 2ND QUARTER 2003.
TACOMA, WASHINGTON---Columbia Banking System, Inc. (Nasdaq: COLB)
today announced net income for the second quarter ended June 30, 2003 of $4.8
million, an increase of 51% compared to $3.2 million for the second quarter of
2002. For the same periods, earnings per share increased 46% to $0.35 per
diluted share, from $0.24 per diluted share. Total nonperforming assets
decreased $14.8 million, or 61%, from $24.3 million at June 30, 2002 to $9.5
million at June 30, 2003. Noninterest income for the second quarter 2003 was
$5.7 million, an increase of 24% from $4.6 million for the second quarter 2002.
Noninterest expense for the second quarter 2003 decreased 1%, to $14.0 million,
from $14.2 million a year ago.
Net income for the six months ended June 30, 2003 was $9.2 million, an
increase of $6.5 million from net income of $2.7 million for the first six
months of 2002. On a diluted per share basis, net income for the six months
ended June 30, 2003 was $0.68, compared with $0.20 cents for the same period
last year. This increase in net income is primarily due to lower loan loss
provisions than the prior year. Additionally, noninterest income for the first
six months of 2003 improved to $11.3 million, a 30% increase from $8.7 million
the prior year. Noninterest expense for the first six months of 2003 was
unchanged at $27.7 million, compared to $27.8 million a year ago.
"Our earnings improved during the second quarter, despite a continued
slow economy in the Pacific Northwest and a challenging interest rate
environment," stated Melanie J. Dressel, President and Chief Executive Officer.
"We continue to focus on improving our business processes with the ultimate goal
of enhancing profitability. Columbia's noninterest income improved significantly
in virtually all categories compared to last year, while noninterest expenses
decreased slightly from a year ago."
Ms. Dressel further noted, "One of our most significant achievements
this quarter was in the area of problem loans, as evidenced by the improvement
in the ratio of our allowance for loan losses to total loans and our coverage of
nonperforming assets. In the second quarter 2003, the provision for loan losses
was $1.0 million, as compared to $2.0 million for the same period in 2002.
Nonperforming assets decreased 61% from June 30, 2002 and 32% from March 31,
2003. The allowance for loan losses to nonperforming assets improved to 210%
from 65% a year ago. We are pleased with this dramatic decrease in nonperforming
assets, reflecting our ongoing focus on the quality of our loan portfolio."
At June 30, 2003, Columbia's total assets were $1.7 billion, an
increase of 8% from $1.6 billion at June 30, 2002. Total loans were $1.1 billion
at June 30, 2003, down 5% from June 30, 2002, and total securities rose to
$386.0 million at June 30, 2003, an increase of 59% from the prior year. Total
deposits increased 15% from June 30, 2002, ending at $1.5 billion at June 30,
2003. Core deposits at June 30, 2003 were $1.1 billion, an increase of $199
million, or 23%, compared with 2002.
Ms. Dressel continued, "Total loans have decreased, primarily due to
the slow economy which has resulted in lower line of credit usage, as well as
softened demand for new commercial loans as businesses reduced inventory and
paid down debt. In this rate environment, the strongest demand is for fixed rate
commercial real estate loans. We continue to manage our interest rate risk by
focusing on assets with relatively short durations."
"Although our South Sound regional economy, where over 75% of our
market is currently centered, is poised to lead the state in economic activity
this year, a slow recovery is predicted," Ms. Dressel further noted. "We will
continue to leverage the strong base of branches we have built in our existing
market areas. Our primary emphasis will be to provide a complete banking
relationship for businesses, the business owners and their employees."
OPERATING RESULTS
QUARTER ENDED JUNE 30, 2003
NET INTEREST INCOME
Net interest income for the second quarter of 2003 increased 1% to
$16.1 million, from $15.9 million for the three months ended June 30, 2002. The
increase is due to the growth in core deposits and reflects the steps the
Company has taken to manage its deposit costs.
With the decreases in the prime rate since the fourth quarter 2002,
the Company experienced downward pressure on its net interest margin. Net
interest margin decreased to 4.26% in the second quarter of 2003, from 4.54% for
the same period last year. Average interest-earning assets grew to $1.55
billion, or 9%, during the second quarter of 2003, compared with $1.43 billion
in the second quarter of 2002. The yield on average interest-earning assets
decreased 87 basis points (a basis point equals 1/100 of 1%) to 5.64% during the
second quarter of 2003 compared with 6.51% during the same period of 2002. In
comparison, average interest-bearing liabilities grew to $1.27 billion, or 6%.
The cost of average interest-bearing liabilities decreased 65 basis points to
1.70% during the second quarter of 2003, from 2.35% in the same period of 2002.
For the six months ended June 30, 2003, net interest income increased
2% to $32.1 million from $31.5 million for the same period last year. During the
first six months of 2003, the Company's net interest margin decreased to 4.31%
from 4.54 % for the same period of 2002. Average interest-earning assets grew to
$1.54 billion during the first six months of 2003, compared with $1.42 billion
for the same period of 2002. The yield on average interest-earning assets
decreased 84 basis points to 5.77% during the first six months of 2003, from
6.61% in 2002. In comparison, average interest-bearing liabilities grew to $1.25
billion compared with $1.19 billion for the first six months of 2002. The cost
of average interest-bearing liabilities decreased to 1.79% during the first six
months of 2003 from 2.48% in the same period of 2002.
NONINTEREST INCOME
Noninterest income increased $1.1 million or 24% in the second quarter
of 2003, and $2.6 million, or 30%, for the first six months of 2003 compared
with the same periods in 2002. Increases during the second quarter and first six
months of 2003 were primarily centered in residential lending, service charge
and other fees, and merchant services income. Increases in service charge and
other fees reflect growth in core deposits. Increases in merchant services
income is due to the overall growth of the customer base, while residential
lending increases were primarily due to continued low mortgage rates.
NONINTEREST EXPENSE
Total noninterest expense decreased 1% to $14.0 million for the second
quarter of 2003, and decreased slightly to $27.7 million for the first six
months of 2003 compared with the same period in 2002. The Company's efficiency
ratio (noninterest expense divided by the sum of net interest income and
noninterest income on a tax equivalent basis, excluding nonrecurring income and
expense) was 62.61% for the second quarter 2003 and 62.22% for first six months
of the year, compared to 67.97% for the second quarter 2002 and 68.14% for the
first six months of 2002. The change in the Company's efficiency ratio is
primarily due to growth in noninterest income and controlled noninterest
expenses.
NONPERFORMING ASSETS AND LOAN LOSS PROVISION
The Company's provision for loan losses was $1.0 million for second
quarter 2003, compared with $2.0 million for second quarter 2002. For the
quarters ended June 30, 2003 and 2002, net loan charge-offs amounted to $278,000
and $1.4 million, respectively. For the first 6 months ended June 30, 2003 and
2002, net loan charge-offs were $1.8 million and $8.0 million, respectively.
The allowance for loan losses had a net increase of $4.2 million, to
$20.0 million at June 30, 2003 as compared to quarter-end a year ago. The
allowance for loan losses as a percentage of loans (excluding loans held for
sale at each date) improved to 1.82% at June 30, 2003 as compared to 1.36% of
loans at June 30, 2002, and 1.63% at year-end 2002. At June 30, 2003, the
allowance for loan losses to nonperforming loans was 322% compared to 96.3% at
June 30, 2002. The allowance for loan losses to nonperforming assets was 210%
compared to 65% the prior year.
The Company currently has no plans for additional new locations in
2003. In May 2003, the Issaquah branch, a storefront facility in the Issaquah
Commons, was closed. Although this location is in a market Columbia would
ultimately like to serve, the branch was not performing up to expectations.
Columbia Banking System, Inc. is a Tacoma-based bank holding company
whose wholly owned subsidiary is Columbia Bank, a Washington state-chartered
full-service commercial bank with 35 banking offices in Pierce, King, Cowlitz,
Kitsap and Thurston counties. Columbia's stock trades on the Nasdaq Stock
MarketSM under the symbol COLB.
# # #
NOTE REGARDING FORWARD-LOOKING STATEMENTS
THIS NEWS RELEASE INCLUDES FORWARD LOOKING STATEMENTS, WHICH MANAGEMENT BELIEVES
ARE A BENEFIT TO SHAREHOLDERS. THESE FORWARD LOOKING STATEMENTS DESCRIBE
COLUMBIA'S MANAGEMENT'S EXPECTATIONS REGARDING FUTURE EVENTS AND DEVELOPMENTS
SUCH AS FUTURE OPERATING RESULTS, GROWTH IN LOANS AND DEPOSITS, CONTINUED
SUCCESS OF COLUMBIA'S STYLE OF BANKING AND THE STRENGTH OF THE LOCAL ECONOMY.
THE WORDS "WILL," "BELIEVE," "EXPECT," "SHOULD," AND "ANTICIPATE" AND WORDS OF
SIMILAR CONSTRUCTION ARE INTENDED IN PART TO HELP IDENTIFY FORWARD LOOKING
STATEMENTS. FUTURE EVENTS ARE DIFFICULT TO PREDICT, AND THE EXPECTATIONS
DESCRIBED ABOVE ARE NECESSARILY SUBJECT TO RISK AND UNCERTAINTY THAT MAY CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY AND ADVERSELY. IN ADDITION TO DISCUSSIONS
ABOUT RISKS AND UNCERTAINTIES SET FORTH FROM TIME TO TIME IN COLUMBIA'S FILINGS
WITH THE SEC, FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE CONTEMPLATED BY SUCH FORWARD LOOKING STATEMENTS INCLUDE, AMONG OTHERS, THE
FOLLOWING POSSIBILITIES: (1) LOCAL, NATIONAL AND INTERNATIONAL ECONOMIC
CONDITIONS ARE LESS FAVORABLE THAN EXPECTED OR HAVE A MORE DIRECT AND PRONOUNCED
EFFECT ON COLUMBIA THAN EXPECTED AND ADVERSELY AFFECT COLUMBIA'S ABILITY TO
CONTINUE ITS INTERNAL GROWTH AT HISTORICAL RATES AND MAINTAIN THE QUALITY OF ITS
EARNING ASSETS; (2) CHANGES IN INTEREST RATES REDUCE INTEREST MARGINS MORE THAN
EXPECTED AND NEGATIVELY AFFECT FUNDING SOURCES; (3) PROJECTED BUSINESS INCREASES
FOLLOWING STRATEGIC EXPANSION OR OPENING OR ACQUIRING NEW BRANCHES ARE LOWER
THAN EXPECTED; (4) COSTS OR DIFFICULTIES RELATED TO THE INTEGRATION OF
ACQUISITIONS ARE GREATER THAN EXPECTED; (5) COMPETITIVE PRESSURE AMONG FINANCIAL
INSTITUTIONS INCREASES SIGNIFICANTLY; (6) LEGISLATION OR REGULATORY REQUIREMENTS
OR CHANGES ADVERSELY AFFECT THE BUSINESSES IN WHICH COLUMBIA IS ENGAGED.
FINANCIAL STATISTICS
====================================================================================================================
COLUMBIA BANKING SYSTEM, INC. THREE MONTHS ENDED SIX MONTHS ENDED
(UNAUDITED) JUNE 30, JUNE 30, ---------------------------- ----------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002
- --------------------------------------------------------------------------------------------------------------------
EARNINGS
- --------
Net interest income $ 16,114 $ 15,927 $ 32,133 $ 31,483
Provision for loan loss 1,000 1,980 2,600 9,045
Noninterest income 5,735 4,617 11,288 8,684
Noninterest expense 14,044 14,152 27,738 27,845
Net income 4,765 3,154 9,196 2,726
PER SHARE
- ---------
Net income (basic) $ 0.36 $ 0.24 $ 0.69 $ 0.21
Net income (diluted) 0.35 0.24 0.68 0.20
AVERAGES
- --------
Total assets $1,709,468 $1,578,889 $1,691,358 $1,563,165
Interest-earning assets 1,554,936 1,430,752 1,537,953 1,423,888
Loans 1,143,862 1,176,788 1,159,810 1,185,176
Securities 404,914 251,125 370,365 232,146
Deposits 1,455,247 1,317,080 1,451,744 1,304,338
Core deposits 982,948 858,297 970,001 847,040
Shareholders' Equity 140,417 120,324 137,803 120,860
FINANCIAL RATIOS
- ----------------
Return on average assets 1.12% 0.80% 1.10% 0.35%
Return on average equity 13.61% 10.51% 13.46% 4.55%
Net interest margin 4.26% 4.54% 4.31% 4.54%
Efficiency ratio (tax equivalent) (1) 62.61% 67.97% 62.22% 68.14%
Average equity to average assets 8.21% 7.62% 8.15% 7.73%
JUNE 30 JUNE 30 DECEMBER 31
PERIOD END 2003 2002 2002
- ---------- ---------- ---------- ----------
Total assets $1,724,798 $1,590,862 $1,699,613
Loans 1,098,675 1,160,847 1,175,853
Allowance for loan losses 19,994 15,767 19,171
Securities 385,971 242,077 337,412
Deposits 1,542,387 1,346,199 1,487,153
Core deposits 1,079,879 881,013 980,709
Shareholders' equity 144,871 122,990 132,384
Book value per share 10.82 9.27 9.95
NONPERFORMING ASSETS
- --------------------
Nonaccrual loans $ 6,165 $ 15,956 $ 16,918
Restructured loans 50 425 187
Personal property owned 769 1,275 916
Real estate owned 2,547 6,668 130
---------- ---------- ----------
Total nonperforming assets $ 9,531 $ 24,324 $ 18,151
Nonperforming loans to period-end loans: 0.57% 1.41% 1.45%
Nonperforming assets to period-end assets: 0.55% 1.53% 1.07%
Allowance for loan losses to period-end loans 1.82% 1.36% 1.63%
Allowance for loan losses to nonperforming loans 321.71% 96.25% 112.08%
Allowance for loan losses to nonperforming assets 209.78% 64.82% 105.62%
Net loan charge-offs $ 1,777(2) $ 8,012(2) $ 11,343(3)
(1) Noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding
nonrecurring income and expense.
(2) For the six months ended June 30.
(3) For the year ended December 31.
QUARTERLY FINANCIAL STATISTICS
COLUMBIA BANKING SYSTEM, INC.
===================================================================================================================================
THREE MONTHS ENDED
----------------------------------------------------------------------------------
UNAUDITED JUNE 30 MAR 31 DEC 31 SEP 30 JUNE 30
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2003 2002 2002 2002
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS
- --------
Net interest income $ 16,114 $ 16,019 $ 16,587 $ 16,219 $ 15,927
Provision for loan loss 1,000 1,600 2,700 4,035 1,980
Noninterest income 5,735 5,553 5,858 5,508 4,617
Noninterest expense 14,044 13,694 13,335 12,473 14,152
Net income 4,765 4,431 4,472 3,687 3,154
PER SHARE
- ---------
Net income [basic] 0.36 0.33 0.34 0.28 0.24
Net income [diluted] 0.35 0.33 0.33 0.28 0.24
AVERAGES
- --------
Total assets 1,709,468 1,673,047 1,668,848 1,607,831 1,578,889
Interest-earning assets 1,554,936 1,520,782 1,518,118 1,451,499 1,430,752
Loans 1,143,862 1,175,935 1,186,886 1,178,493 1,176,788
Securities 404,914 335,432 280,358 242,844 251,125
Deposits 1,455,247 1,448,203 1,454,955 1,378,396 1,317,080
Core deposits 982,948 956,909 951,165 893,548 858,297
Shareholders' Equity 140,417 135,160 129,137 125,421 120,324
FINANCIAL RATIOS
- ----------------
Return on average assets 1.12% 1.07% 1.06% 0.91% 0.80%
Return on average equity 13.61% 13.30% 13.74% 11.66% 10.51%
Net interest margin 4.26% 4.37% 4.42% 4.52% 4.54%
Efficiency ratio (tax equivalent) 62.61% 61.82% 60.28% 62.10% 67.97%
Average equity to average assets 8.21% 8.08% 7.74% 7.80% 7.62%
PERIOD END
- ----------
Total assets 1,724,798 1,758,587 1,699,613 1,661,370 1,590,862
Loans 1,098,675 1,146,527 1,175,853 1,167,633 1,160,847
Allowance for loan losses 19,994 19,272 19,171 18,426 15,767
Securities 385,971 426,088 337,412 253,114 242,077
Deposits 1,542,387 1,489,039 1,487,153 1,437,728 1,346,199
Core deposits 1,079,879 1,006,121 980,709 945,502 881,013
Shareholders' equity 144,871 137,594 132,384 127,699 122,990
Book value per share 10.82 10.32 9.95 9.63 9.27
NONPERFORMING ASSETS
- --------------------
Nonaccrual loans 6,165 10,532 16,918 15,027 15,956
Restructured loans 50 130 187 425 425
Personal property owned 769 836 916 1,148 1,275
Real estate owned 2,547 2,500 130 4,681 6,668
---------- ---------- ---------- ---------- ----------
Total nonperforming assets 9,531 13,998 18,151 21,281 24,324
Nonperforming loans to period-end loans 0.57% 0.93% 1.45% 1.32% 1.41%
Nonperforming assets to period-end assets 0.55% 0.80% 1.07% 1.28% 1.53%
Allowance for loan losses to period-end loans 1.82% 1.68% 1.63% 1.58% 1.36%
Allowance for loan losses to nonperforming loans 321.71% 180.75% 112.08% 119.25% 96.25%
Allowance for loan losses to nonperforming assets 209.78% 137.68% 105.62% 86.58% 64.82%
Net loan charge-offs 278 1,499 1,955 1,376 1,439
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
COLUMBIA BANKING SYSTEM, INC.
(UNAUDITED)
==================================================================================================================
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------- -------------------------
(IN THOUSANDS EXCEPT PER SHARE) 2003 2002 2003 2002
- ------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Loans $ 17,861 $ 19,929 $ 36,473 $ 40,408
Securities available for sale 3,557 2,970 6,654 5,542
Securities held to maturity 43 53 87 112
Deposits with banks 18 12 45 55
- ----------------------------------------------------- ---------- ---------- ---------- ----------
Total interest income 21,479 22,964 43,259 46,117
INTEREST EXPENSE
Deposits 4,770 6,099 9,976 12,814
Federal Home Loan Bank advances 323 633 600 1,205
Trust preferred obligations 272 305 550 615
- ----------------------------------------------------- ---------- ---------- ---------- ----------
Total interest expense 5,365 7,037 11,126 14,634
- ----------------------------------------------------- ---------- ---------- ---------- ----------
NET INTEREST INCOME 16,114 15,927 32,133 31,483
Provision for loan losses 1,000 1,980 2,600 9,045
- ----------------------------------------------------- ---------- ---------- ---------- ----------
Net interest income after provision for loan losses 15,114 13,947 29,533 22,438
NONINTEREST INCOME
Service charges and other fees 2,351 1,976 4,746 3,918
Mortgage banking 1,117 563 2,198 1,159
Merchant services fees 1,517 1,233 2,808 2,279
Gain on sale of investment securities, net 234 234
Bank owned life insurance (BOLI) 368 374 766 604
Other 382 237 770 490
- ----------------------------------------------------- ---------- ---------- ---------- ----------
Total noninterest income 5,735 4,617 11,288 8,684
NONINTEREST EXPENSE
Compensation and employee benefits 7,382 7,410 14,554 14,699
Occupancy 2,210 2,054 4,397 4,021
Merchant processing 638 506 1,134 923
Advertising and promotion 545 647 1,052 1,323
Data processing 467 471 916 932
Legal & Professional services 470 399 984 809
Taxes, licenses & fees 362 423 812 851
Net cost (gains) of OREO 42 (7) 37 (34)
Other 1,928 2,249 3,852 4,321
- ----------------------------------------------------- ---------- ---------- ---------- ----------
Total noninterest expense 14,044 14,152 27,738 27,845
- ----------------------------------------------------- ---------- ---------- ---------- ----------
Income before income taxes 6,805 4,412 13,083 3,277
Provision for income taxes 2,040 1,258 3,887 551
- ----------------------------------------------------- ---------- ---------- ---------- ----------
NET INCOME $ 4,765 $ 3,154 $ 9,196 $ 2,726
===================================================== ========== ========== ========== ==========
Net income per common share:
Basic $ 0.36 $ 0.24 $ 0.69 $ 0.21
Diluted 0.35 0.24 0.68 0.20
Dividend declared per common share 0.05 0.05
Average number of common shares outstanding 13,359 13,157 13,342 13,151
Average number of diluted common shares outstanding 13,530 13,311 13,477 13,303
CONSOLIDATED CONDENSED BALANCE SHEETS
COLUMBIA BANKING SYSTEM, INC.
(UNAUDITED)
(IN THOUSANDS)
========================================================================================================
JUNE 30, DECEMBER 31,
2003 2002
- --------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 72,170 $ 67,058
Interest-earning deposits with banks 56,368 18,425
- -------------------------------------------------------------------------- ---------- ----------
Total cash and cash equivalents 128,538 85,483
Securities available for sale at fair value (amortized cost of $364,282
and $320,499 respectively) 370,012 321,513
Securities held to maturity (fair value of $6,253 and $6,412 respectively) 6,023 6,192
Federal Home Loan Bank stock 9,936 9,707
Loans held for sale 32,438 22,102
Loans, net of unearned income of ($2,680) and ($2,625) respectively 1,098,675 1,175,853
Less: allowance for loan losses 19,994 19,171
- -------------------------------------------------------------------------- ---------- ----------
Loans, net 1,078,681 1,156,682
Interest receivable 6,692 6,710
Premises and equipment, net 51,739 52,921
Real estate owned 2,547 130
Other 38,192 38,173
- -------------------------------------------------------------------------- ---------- ----------
Total Assets $1,724,798 $1,699,613
========================================================================== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 324,694 $ 299,862
Interest-bearing 1,217,693 1,187,291
- -------------------------------------------------------------------------- ---------- ----------
Total deposits 1,542,387 1,487,153
Federal Home Loan Bank advances 7,133 46,470
Trust preferred obligations 21,466 21,433
Other liabilities 8,941 12,173
- -------------------------------------------------------------------------- ---------- ----------
Total liabilities 1,579,927 1,567,229
Shareholders' equity:
Preferred stock (no par value)
Authorized, 2 million shares; none outstanding
June 30, December 31,
Common stock (no par value) 2003 2002
---------- ----------
Authorized shares 60,032 60,032
Issued and outstanding 13,386 13,310 111,922 111,028
Retained earnings 29,224 20,696
Accumulated other comprehensive income -
Unrealized gains on securities available for sale, net of tax 3,725 660
- --------------------------------------------------------------------------------------------------------
Total shareholders' equity 144,871 132,384
- --------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $1,724,798 $1,699,613
========================================================================================================