EX-99.1 2 doc2.txt EXHIBIT 99.1 Page 1 of 10 -------------------------------------------------------------------------------- EXHIBIT NO. 99.1 FOR IMMEDIATE RELEASE ATTENTION: FINANCIAL AND BUSINESS EDITORS -------------------------------------------------------------------------------- Contact: Daryl R. Forsythe, CEO Michael J. Chewens, CFO NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6416 NBT BANCORP ANNOUNCES QUARTERLY EARNINGS OF $12.6 MILLION; DECLARES CASH DIVIDEND NORWICH, NY (October 25, 2004) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the quarter ended September 30, 2004, was $12.6 million, or $0.38 per diluted share, up 6% from $11.8 million, or $0.36 per diluted share for the same period a year ago. Return on average assets and return on average equity were 1.20% and 15.94%, respectively, for the quarter ended September 30, 2004, compared with 1.21% and 16.06%, respectively, for the same period in 2003. The increase in net income for the quarter ended September 30, 2004, was primarily the result of a $2.5 million increase in net interest income that was partially offset by a $1.3 million increase in total noninterest expense and a $0.7 million increase in income tax expense. Net income for the nine months ended September 30, 2004, was $37.6 million, or $1.14 per diluted share, up 7% compared with $35.2 million or $1.07 per diluted share for the first nine months of 2003. Return on average assets and return on average equity were 1.23% and 15.91%, respectively, for the nine months ended September 30, 2004, compared with 1.24% and 16.09%, respectively, for the same period in 2003. The increase in net income for the nine months ended September 30, 2004, was primarily the result of a $4.7 million increase in net interest income and a $2.9 million increase in total noninterest income that was partially offset by increases in total noninterest expense of $2.6 million, the provision for loan and lease losses of $1.1 million and income tax expense of $1.6 million. NBT Chairman and CEO Daryl R. Forsythe stated, "The Company delivered another quarter of strong loan growth, which was supported by excellent credit quality and a stable net interest margin. These factors enabled the Company to achieve another solid earnings quarter. Meanwhile, we continue our branch expansion efforts in the Albany, Binghamton and Northeastern Pennsylvania markets. In September, we opened our 113th branch, located in Endicott, NY near Binghamton. In early 2005, we Page 2 of 10 plan on opening two additional branches in downtown Albany and Mountain Top, PA. We look forward to expanding in these markets to further compliment our strong customer base and community banking franchise." LOAN AND LEASE QUALITY AND PROVISION FOR LOAN AND LEASE LOSSES Nonperforming loans at September 30, 2004 were $16.0 million or 0.57% of total loans and leases compared with $16.5 million or 0.65% of total loans and leases at September 30, 2003 and $14.8 million or 0.56% of total loans and leases at December 31, 2003. The Company's allowance for loan and lease losses was 1.58% of loans and leases at September 30, 2004 compared to 1.63% at September 30, 2003 and 1.62% at December 31, 2003. The ratio of the allowance for loan and lease losses to nonperforming loans was 278.98% at September 30, 2004 compared to 253.05% at September 30, 2003 and 287.62% at December 31, 2003. Annualized net charge-offs to average loans and leases for the nine months ended September 30, 2004, were 0.25%, up slightly from the 0.24% annualized ratio for the nine months ended September 30, 2003, and down slightly from the ratio for the year ended December 31, 2003 of 0.27%. For the quarter and nine months ended September 30, 2004, the provision for loan and lease losses totaled $2.3 million and $6.9 million, respectively, compared with the $2.4 million and $5.8 million for the same periods in 2003. The decrease in the provision for loan and lease losses for the quarter ended September 30, 2004 compared to the same period in 2003 resulted mainly from lower net charge-offs, which totaled $1.3 million for the quarter ended September 30, 2004, compared to $1.6 million for the same period in 2003. The increase in the provision for loan and lease losses for the nine months ended September 30, 2004 when compared to the same period in 2003 was due primarily to loan and lease growth as well as an increase in net charge-offs. Loans and leases at September 30, 2004 increased 10% when compared to loans and leases at September 30, 2003. Net charge-offs for the nine months ended September 30, 2004 were up $0.7 million to $5.0 million from $4.3 million for the same period in 2003. The provision for loan and lease losses represents the charge against current earnings that is determined by management, through a disciplined credit review process, as the amount needed to maintain an allowance that is sufficient to absorb loan and lease losses inherent in the Company's current loan and lease portfolio. NET INTEREST INCOME Net interest income was up 7% to $38.1 million for the quarter ended September 30, 2004, compared to $35.6 million for the same period a year ago. The increase in net interest income was attributable to 7% growth in average earning assets driven by growth in average loans and leases of 10%. The Company has maintained a stable net interest margin in a rising rate environment thus far, as the net Page 3 of 10 interest margin was 3.99% for the quarter ended September 30, 2004, down slightly from the 4.02% for the same period in 2003. Net interest income for the nine months ended September 30, 2004 increased 4% to $111.8 million from $107.1 million in the same period for 2003. The increase in net interest income was attributable to 8% growth in average earning assets for the period offset by a decline in the Company's net interest margin, which was 4.03% for the nine months ended September 30, 2004, down from the 4.19% for the same period in 2003. The decline of net interest margin during the nine months and quarter ended September 30, 2004 compared to the same periods last year resulted from earning assets repricing down at a faster rate than interest-bearing liabilities during the first-half of 2004. NONINTEREST INCOME Noninterest income for the quarter ended September 30, 2004 increased slightly to $10.1 million from $10.0 million for the same period in 2003. Trust revenue increased $0.2 million or 23%, primarily from higher personal agency and trust fees primarily from account growth. Noninterest income for the nine months ended September 30, 2004 was $30.5 million, up $2.9 million or 10% from $27.7 million for the same period in 2003. Service charges on deposit accounts for the nine months ended September 30, 2004 increased $0.8 million or 7% over the same period in 2003. The increase in service charges on deposit accounts resulted primarily from higher revenue collected for overdraft fees from pricing adjustments implemented during the second half of 2003. Other income for the nine months ended September 30, 2004 increased $0.7 million or 9% over the same period in 2003. The increase in other income was driven primarily by increases in fees for consumer and commercial banking activity. Trust revenue was up $0.5 million or 16% primarily from strong account growth. Broker/dealer and insurance revenue increased $0.3 million or 6%, due primarily to the initiative to sell financial service products throughout the Bank's 113-branch network beginning in 2003. Income from Bank Owned Life Insurance (BOLI) increased $0.7 million for the nine months ended September 30, 2004 over the same period in the prior year resulting from the purchase of $30 million of BOLI in June 2003. NONINTEREST EXPENSE Noninterest expense for the quarter ended September 30, 2004 was $27.3 million, up $1.3 million or 5% from $26.0 million for the same period in 2003. Salaries and employee benefits for the quarter ended September 30, 2004 increased $0.9 million or 7% over the same period in 2003 mainly from higher salaries from increases in: merit pay; the number of full-time-equivalent employees (FTE) resulting from branch expansion; and employee medical insurance costs. Occupancy expense for the quarter Page 4 of 10 ended September 30, 2004 increased $0.3 million or 14% over the same period in 2003 primarily from branch expansion in the Albany and Binghamton markets. Noninterest expense for the nine months ended September 30, 2004 was $80.4 million, up $2.6 million or 3% from $77.7 million for the same period in 2003. The increase in noninterest expense was due primarily to increases in salaries and employee benefits, occupancy expense and professional fees and outside services partially offset by decreases in loan collection and OREO costs and other operating expense. Salaries and employee benefits increased $2.8 million, mainly from a $1.6 million increase in salary expense from merit and FTE increases and an increase in employee medical costs of $0.8 million. Occupancy expense increased $0.6 million from the previously mentioned expansion in the Albany and Binghamton markets. Professional fees and outside services increased $0.6 million mainly from increased courier, legal and audit costs. Loan collection and OREO costs decreased $0.4 million from a decrease in OREO expenses resulting from a decline in the number of OREO properties under management as OREO totaled $0.4 million at September 30, 2004 compared to $1.9 million at September 30, 2003. Other operating expense decreased $0.5 million mainly from a $0.6 million charge for the writedown of a nonmarketable security in 2003. BALANCE SHEET Total assets were $4.2 billion at September 30, 2004 up $0.2 billion from $4.0 billion at September 30, 2003. Loans and leases increased $0.3 billion or 10% from $2.6 billion at September 30, 2003 to $2.8 billion at September 30, 2004. Solid production from consumer, commercial and residential real estate loans drove loan growth. Total deposits were $3.1 billion at September 30, 2004 up $0.1 billion when compared to the same period in 2003. Core deposits, which include checking, savings and money market accounts increased $0.2 billion or 9% from $1.8 billion at September 30, 2003 to $2.0 billion at September 30, 2004 offset by a $0.1 billion decrease in time deposits during the same period. Stockholders' equity was $325.4 million representing a Tier 1 leverage ratio of 6.96% at September 30, 2004 compared with $304.7 million or a Tier 1 leverage ratio of 6.77% at September 30, 2003. Under a previously announced stock repurchase plan, the Company acquired 416,689 shares of its common stock at an average price of $21.56 per share totaling $9.0 million for the nine months ended September 30, 2004. DIVIDEND DECLARED The NBT Board of Directors declared a fourth quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on December 15, 2004 to shareholders of record as of December 1, 2004. Page 5 of 10 CORPORATE OVERVIEW NBT is a financial services holding company headquartered in Norwich, NY, with total assets of $4.2 billion at September 30, 2004. The Company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions and through a financial services company. NBT Bank, N.A. has 113 locations, including 73 NBT Bank offices in upstate New York and 40 Pennstar Bank offices in northeastern Pennsylvania. NBT also provides financial services products through M. Griffith, Inc. More information about NBT and its banking divisions can be found on the Internet at www.nbtbancorp.com, www.nbtbank.com, ------------------ --------------- and www.pennstarbank.com. -------------------- FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events. FINANCIAL TABLES APPEAR ON FOLLOWING PAGES (6-10).
Page 6 of 10 NBT BANCORP INC. SELECTED FINANCIAL HIGHLIGHTS (unaudited) NET PERCENT 2004 2003 CHANGE CHANGE ---- ---- ----- ------ (dollars in thousands, except share and per share data) THREE MONTHS ENDED SEPTEMBER 30, Net Income $ 12,617 $ 11,848 $ 769 6% Diluted Earnings Per Share $ 0.38 $ 0.36 $ 0.02 6% Weighted Average Diluted Common Shares Outstanding 32,935,584 32,864,477 71,107 0% Return on Average Assets 1.20% 1.21% -0.01% -1% Return on Average Equity 15.94% 16.06% -0.12% -1% Net Interest Margin 3.99% 4.02% -0.03% -1% ============================================================================================================================== NINE MONTHS ENDED SEPTEMBER 30, Net Income $ 37,556 $ 35,222 $ 2,334 7% Diluted Earnings Per Share $ 1.14 $ 1.07 $ 0.07 7% Weighted Average Diluted Common Shares Outstanding 33,063,675 32,767,180 296,495 1% Return on Average Assets 1.23% 1.24% -0.01% -1% Return on Average Equity 15.91% 16.09% -0.18% -1% Net Interest Margin 4.03% 4.19% -0.16% -4% ============================================================================================================================== ASSET QUALITY SEPTEMBER 30, December 31, September 30, 2004 2003 2003 ---- ---- ---- Nonaccrual Loans $ 14,618 $ 13,861 $ 15,274 90 Days Past Due and Still Accruing $ 1,347 $ 968 $ 1,194 Total Nonperforming Loans $ 15,965 $ 14,829 $ 16,468 Other Real Estate Owned (OREO) $ 446 $ 1,157 $ 1,871 Total Nonperforming Loans and OREO $ 16,411 $ 15,986 $ 18,339 Nonperforming Securities $ 0 $ 395 $ 619 Total Nonperforming Assets $ 16,411 $ 16,381 $ 18,958 Allowance for Loan and Lease Losses $ 44,539 $ 42,651 $ 41,672 Year-to-Date (YTD) Net Charge-Offs $ 4,977 $ 6,627 $ 4,284 Allowance to Loans and Leases 1.58% 1.62% 1.63% Total Nonperforming Loans to Loans and Leases 0.57% 0.56% 0.65% Total Nonperforming Assets to Assets 0.39% 0.40% 0.47% Allowance to Nonperforming Loans 278.98% 287.62% 253.05% Annualized Net Charge-Offs to YTD Average Loans and Leases 0.25% 0.27% 0.24% ============================================================================================================================== CAPITAL Equity to Assets 7.75% 7.66% 7.53% Book Value Per Share $ 9.93 $ 9.46 $ 9.32 Tangible Book Value Per Share $ 8.42 $ 7.94 $ 7.79 Tier 1 Leverage Ratio 6.96% 6.76% 6.77% Tier 1 Capital Ratio 9.61% 9.96% 9.78% Total Risk-Based Capital Ratio 10.86% 11.21% 11.03% ============================================================================================================================== --------------------------------------------------------------------------------------------------------------------- QUARTERLY COMMON STOCK PRICE 2004 2003 2002 Quarter End High Low High Low High Low ----- --- ---- --- ---- --- March 31 $23.00 $21.21 $18.60 $16.76 $15.15 $13.15 June 30 $23.18 $19.92 19.94 17.37 19.32 14.00 September 30 $24.34 $21.02 21.76 19.24 18.50 16.36 December 31 22.78 19.50 18.60 14.76 ---------------------------------------------------------------------------------------------------------------------
Page 7 of 10 NBT BANCORP INC. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) Net Percent 2004 2003 Change Change ------------ ------------------ --------------- ----------- (dollars in thousands, except share and per share data) BALANCE SHEET AS OF SEPTEMBER 30, Loans $ 2,814,553 $ 2,550,466 $ 264,087 10% Earning Assets $ 3,904,928 $ 3,743,218 $ 161,710 4% Total Assets $ 4,201,089 $ 4,047,237 $ 153,852 4% Deposits $ 3,090,629 $ 2,971,049 $ 119,580 4% Stockholders' Equity $ 325,378 $ 304,690 $ 20,688 7% ===================================================================================================================== AVERAGE BALANCES QUARTER ENDED SEPTEMBER 30, Loans $ 2,784,851 $ 2,527,099 $ 257,752 10% Securities AFS (excluding unrealized gains or losses) $ 985,202 $ 966,254 $ 18,948 2% Securities HTM $ 78,310 $ 99,812 ($21,502) -22% Regulatory Equity Investment $ 37,012 $ 29,469 $ 7,543 26% Short-Term Interest Bearing Accounts $ 7,395 $ 1,642 $ 5,753 350% Total Earning Assets $ 3,892,770 $ 3,624,276 $ 268,494 7% Total Assets $ 4,168,385 $ 3,902,609 $ 265,776 7% Interest Bearing Deposits $ 2,550,737 $ 2,491,467 $ 59,270 2% Non-Interest Bearing Deposits $ 504,457 $ 469,432 $ 35,025 7% Short-Term Borrowings $ 336,077 $ 212,568 $ 123,509 58% Long-Term Borrowings $ 411,647 $ 369,843 $ 41,804 11% Total Interest Bearing Liabilities $ 3,298,461 $ 3,073,878 $ 224,583 7% Stockholders' Equity $ 314,946 $ 292,886 $ 22,060 8% ===================================================================================================================== AVERAGE BALANCES NINE MONTHS ENDED SEPTEMBER 30, Loans $ 2,710,147 $ 2,433,665 $ 276,482 11% Securities AFS (excluding unrealized gains or losses) $ 974,671 $ 973,318 $ 1,353 0% Securities HTM $ 87,322 $ 88,923 ($1,601) -2% Regulatory Equity Investment $ 34,778 $ 25,668 $ 9,110 35% Short-Term Interest Bearing Accounts $ 7,638 $ 3,706 $ 3,932 106% Total Earning Assets $ 3,814,556 $ 3,525,280 $ 289,276 8% Total Assets $ 4,091,552 $ 3,791,955 $ 299,597 8% Interest Bearing Deposits $ 2,542,621 $ 2,482,195 $ 60,426 2% Non-Interest Bearing Deposits $ 485,679 $ 449,520 $ 36,159 8% Short-Term Borrowings $ 303,251 $ 145,038 $ 158,213 109% Long-Term Borrowings $ 395,621 $ 357,967 $ 37,654 11% Total Interest Bearing Liabilities $ 3,241,493 $ 2,985,200 $ 256,293 9% Stockholders' Equity $ 315,328 $ 293,364 $ 21,964 7% =====================================================================================================================
Page 8 of 10 NBT BANCORP INC. AND SUBSIDIARIES SEPTEMBER 30, December 31, September 30, CONSOLIDATED BALANCE SHEETS (UNAUDITED) 2004 2003 2003 ----------------------------------------------------------------------------------------------------------------- (in thousands) ASSETS Cash and due from banks $ 119,424 $ 125,590 $ 120,905 Short term interest bearing accounts 7,427 2,502 2,155 Securities available for sale, at fair value 978,925 980,961 1,076,053 Securities held to maturity (fair value of $79,007, $98,576, and 77,826 97,204 97,499 99,020, at September 30, 2004, December 31, 2003 and September 30, 2003, respectively) Federal Reserve and Federal Home Loan Bank stock 37,042 34,043 35,218 Loans and leases 2,814,553 2,639,976 2,550,466 Less allowance for loan and lease losses 44,539 42,651 41,672 ================================================================================================================= Net loans and leases 2,770,014 2,597,325 2,508,794 Premises and equipment, net 62,557 62,443 61,857 Goodwill 47,521 47,521 47,521 Intangible assets, net 2,084 2,331 2,474 Bank owned life insurance 31,957 30,815 30,412 Other assets 66,312 66,150 64,349 ----------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 4,201,089 $ 4,046,885 $ 4,047,237 ================================================================================================================= LIABILITIES, GUARANTEED PREFERRED BENEFICIAL INTERESTS IN COMPANY'S JUNIOR SUBORDINATE DEBENTURES AND CAPITAL Deposits: Demand (noninterest bearing) $ 506,652 $ 500,303 $ 482,703 Savings, NOW, and money market 1,513,197 1,401,825 1,364,568 Time 1,070,780 1,099,223 1,123,778 ----------------------------------------------------------------------------------------------------------------- Total deposits 3,090,629 3,001,351 2,971,049 Short-term borrowings 319,620 302,931 331,964 Long-term debt 394,545 369,700 369,721 Trust preferred debentures 18,720 - - Other liabilities 52,197 45,869 52,813 ----------------------------------------------------------------------------------------------------------------- Total liabilities 3,875,711 3,719,851 3,725,547 Guaranteed preferred beneficial interests in Company's junior subordinated debentures - 17,000 17,000 Total stockholders' equity 325,378 310,034 304,690 ================================================================================================================= TOTAL LIABILITIES, GUARANTEED PREFERRED BENEFICIAL INTERESTS IN COMPANY'S JUNIOR SUBORDINATE DEBENTURES AND CAPITAL $ 4,201,089 $ 4,046,885 $ 4,047,237 =================================================================================================================
Page 9 of 10 Three months ended Nine months ended NBT BANCORP INC. AND SUBSIDIARIES September 30, September 30, CONSOLIDATED STATEMENTS OF INCOME 2004 2003 2004 2003 ------------------------------------------------------------------------------------------------------------- (in thousands, except per share data) (Unaudited) INTEREST, FEE AND DIVIDEND INCOME: Loans and leases $ 41,283 $ 39,881 $ 120,812 $ 119,036 Securities available for sale 10,784 9,871 31,866 32,540 Securities held to maturity 731 840 2,283 2,586 Other 295 196 797 854 ------------------------------------------------------------------------------------------------------------- Total interest, fee and dividend income 53,093 50,788 155,758 155,016 ------------------------------------------------------------------------------------------------------------- INTEREST EXPENSE: Deposits 9,743 10,920 29,462 35,572 Short-term borrowings 1,192 704 2,779 1,363 Long-term debt 3,861 3,586 11,103 10,982 Trust preferred debentures 245 - 588 - ------------------------------------------------------------------------------------------------------------- Total interest expense 15,041 15,210 43,932 47,917 ------------------------------------------------------------------------------------------------------------- Net interest income 38,052 35,578 111,826 107,099 Provision for loan and lease losses 2,313 2,436 6,865 5,789 ------------------------------------------------------------------------------------------------------------- Net interest income after provision for loan and lease losses 35,739 33,142 104,961 101,310 ------------------------------------------------------------------------------------------------------------- NONINTEREST INCOME: Trust 1,182 958 3,431 2,966 Service charges on deposit accounts 4,159 4,164 12,286 11,531 Broker/dealer and insurance revenue 1,696 1,763 5,210 4,905 Net securities gains 18 18 56 83 Bank owned life insurance income 348 398 1,142 412 Other 2,714 2,672 8,424 7,757 ------------------------------------------------------------------------------------------------------------- Total noninterest income 10,117 9,973 30,549 27,654 ------------------------------------------------------------------------------------------------------------- NONINTEREST EXPENSE: Salaries and employee benefits 13,345 12,486 40,000 37,205 Office supplies and postage 1,167 1,104 3,341 3,188 Occupancy 2,445 2,143 7,489 6,851 Equipment 1,941 1,909 5,575 5,619 Professional fees and outside services 1,536 1,421 4,592 3,963 Data processing and communications 2,688 2,640 8,232 8,081 Capital securities - 181 - 551 Amortization of intangible assets 71 158 213 475 Loan collection and other real estate owned 339 448 810 1,204 Other operating 3,773 3,493 10,118 10,586 ------------------------------------------------------------------------------------------------------------- Total noninterest expense 27,305 25,983 80,370 77,723 ------------------------------------------------------------------------------------------------------------- Income before income taxes 18,551 17,132 55,140 51,241 Income taxes 5,934 5,284 17,584 16,019 ------------------------------------------------------------------------------------------------------------- NET INCOME $ 12,617 $ 11,848 $ 37,556 $ 35,222 ------------------------------------------------------------------------------------------------------------- Earnings Per Share: Basic $ 0.39 $ 0.36 $ 1.15 $ 1.08 Diluted $ 0.38 $ 0.36 $ 1.14 $ 1.07 =============================================================================================================
Page 10 of 10 NBT BANCORP INC. AND SUBSIDIARIES 3Q 2Q 1Q 4Q 3Q QUARTERLY CONSOLIDATED STATEMENTS OF INCOME 2004 2004 2004 2003 2003 ----------------------------------------------------------------------------------------------------------- (in thousands, except per share data) (Unaudited) INTEREST, FEE AND DIVIDEND INCOME: Loans $41,283 $39,635 $39,894 $40,082 $39,881 Securities available for sale 10,784 10,313 10,769 11,311 9,871 Securities held to maturity 731 755 797 805 840 Other 295 235 267 84 196 ----------------------------------------------------------------------------------------------------------- Total interest, fee and dividend income 53,093 50,938 51,727 52,282 50,788 ----------------------------------------------------------------------------------------------------------- INTEREST EXPENSE: Deposits 9,743 9,674 10,045 10,369 10,920 Short-term borrowings 1,192 794 793 808 704 Long-term debt 3,861 3,627 3,615 3,780 3,586 Trust preferred debentures 245 163 180 - - ----------------------------------------------------------------------------------------------------------- Total interest expense 15,041 14,258 14,633 14,957 15,210 ----------------------------------------------------------------------------------------------------------- Net interest income 38,052 36,680 37,094 37,325 35,578 Provision for loan and lease losses 2,313 2,428 2,124 3,322 2,436 ----------------------------------------------------------------------------------------------------------- Net interest income after provision for loan and lease losses 35,739 34,252 34,970 34,003 33,142 ----------------------------------------------------------------------------------------------------------- NONINTEREST INCOME: Trust 1,182 1,142 1,107 1,075 958 Service charges on deposit accounts 4,159 4,090 4,037 4,302 4,164 Broker/dealer and insurance fees 1,696 1,783 1,731 1,964 1,763 Net securities gains 18 29 9 92 18 Bank owned life insurance income 348 409 385 403 398 Other 2,714 2,536 3,174 2,288 2,672 ----------------------------------------------------------------------------------------------------------- Total noninterest income 10,117 9,989 10,443 10,124 9,973 ----------------------------------------------------------------------------------------------------------- NONINTEREST EXPENSE: Salaries and employee benefits 13,345 12,542 14,113 12,355 12,486 Office supplies and postage 1,167 1,143 1,031 1,028 1,104 Occupancy 2,445 2,446 2,598 2,477 2,143 Equipment 1,941 1,781 1,853 2,008 1,909 Professional fees and outside services 1,536 1,424 1,632 1,470 1,421 Data processing and communications 2,688 2,852 2,692 2,671 2,640 Capital securities - - - 181 181 Amortization of intangible assets 71 71 71 145 158 Loan collection and other real estate owned 339 99 372 636 448 Other operating 3,773 3,505 2,840 3,823 3,493 ----------------------------------------------------------------------------------------------------------- Total noninterest expense 27,305 25,863 27,202 26,794 25,983 ----------------------------------------------------------------------------------------------------------- Income before income taxes 18,551 18,378 18,211 17,333 17,132 Income taxes 5,934 5,810 5,840 5,451 5,284 ----------------------------------------------------------------------------------------------------------- NET INCOME $12,617 $12,568 $12,371 $11,882 $11,848 =========================================================================================================== Earnings per share: Basic $ 0.39 $ 0.38 $ 0.38 $ 0.36 $ 0.36 Diluted $ 0.38 $ 0.38 $ 0.37 $ 0.36 $ 0.36 ===========================================================================================================